A teardown from the iphone 4 reveals that Apple spent almost $188 in components and electronics to produce a device that's highly profitable and reflects the company's style prowess, a research firm says.
Apple's bill of materials for the new iphone is really a continuation of the company's capability to hold down costs, as reflected in previous versions from the smartphone, iSuppli mentioned in releasing its teardown analysis Monday. However, what makes the iphone 4 "radically different" is the design. "Just as it did with the iPad, Apple has thrown away the electronics playbook with the i phone 4, reaching new heights in terms of industrial style, electronics integration and user interface," iSuppli analyst Kevin Keller said in a statement.
Apple's BOM of $187.51 for that fourth-generation i phone is in line with those of earlier versions, Keller mentioned. "With the iphone maintaining its existing pricing, Apple will probably be capable to maintain the prodigious margins that have allowed it to construct up a colossal cash reserve -- 1 whose size is exceeded only by Microsoft Corp." In earlier teardowns, iSuppli estimated the BOM from the 2009 i phone 3GS at $170.80; the 2008 3G at $166.31 and also the very first iphone in 2007 at $217.73. While the i phone 4 provides better performance and more capabilities than its predecessor, the starting cost remains the exact same at $199.
The most expensive element from the i phone 4 may be the 3.5-inch LCD display that Apple calls a "retina display." The element functions a 960 x 630 resolution, four times that from the iphone 3GS. The cost from the new display is $28.50, iSuppli said.
While the screen is unlabeled, it was most most likely made by LG Show. Nevertheless, iSuppli mentioned Toshiba Mobile Display could also be a supplier.
Apple's most apparent innovation within the iphone 4 is within the redesigned housing, iSuppli said. Unlike the unibody housing of earlier models, the new phone's enclosure is composed of multiple pieces, producing it feasible to accommodate a larger battery and turn the metal sides from the enclosure into an antenna.
"This adds much more complexity and cost, but elegantly uses every feasible cubic millimeter of the i phone for function, and not just form," Keller mentioned. "The tight intertwining of form and function is an area where Apple has usually excelled."
While innovative in design, the iphone 4 antenna has not met the expectations of numerous Apple clients. Buyers have reported that the new smartphone drops its signal if the bottom left corner from the device is covered by the palm from the user's hand, a common occurrence when the phone is held by lefties. Apple is reportedly preparing a software patch to fix the flaw.
One more innovation within the iphone 4 may be the far smaller wireless section of the device, which is the result of integrating much more functionality into the core chipset elements.
"Out from the almost 300 cell phones torn down by iSuppli, the iphone comes the closest to integrating the entire wireless interface -- including all the supporting Radio Frequency (RF) modules -- on a single chip," Keller mentioned. "This further enhances the i phone 4's space efficiency and serves as yet one more testament towards the advanced state of Apple's style."
A new element within the smartphone is really a gyroscope supplied by STMicroelectronics. The 3-axis digital component makes it possible for that i phone 4 to record movement three dimensionally for more realistic game play. The element cost $2.60, iSuppli mentioned.
A teardown analysis released last week by InformatonWeek's sister company, UBM TechInsights, discovered that the gyroscope is most likely slated for the next-generation iPad too. TechInsights senior analyst Steve Bitton said there's an almost-perfect spot for it, located correct beside the iPad's accelerometer.
The global positioning program utilized in navigation applications for that iphone is created by Broadcom and expenses $1.75, iSuppli mentioned. Broadcom also created the Wi-Fi/Bluetooth wireless chip, which price $7.80.
Other elements include the Apple-designed A4 processor constructed by Samsung Electronics. ISuppli estimates the cost of $10.75.
The glass capacitive touch screen that overlays the iphone 4 cost $10, ISuppli estimates. Whilst the element is not labeled, the researcher believes it was built by Balda and/or TPK Holding.
ISuppli's overall price estimates does not consist of the price of labor, marketing, patent licensing or other non-BOM expenses. The latest teardown was the 16 GB version of the i phone 4, which sells for $199. Apple also sells a 32 GB model for $299.
In the last quarter, the i phone accounted for 40% of Apple's revenue.
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