Feeds

Apple 8GB iPhone components 'cost $220'

Does the remaining $400 cover software development etc?

The Power of One Brief: Top reasons to choose HP BladeSystem

Apple's 4GB iPhone costs $200 in components to make. The 8GB model's parts total just $20 more. So claims US market watcher and device stripper-down Portelligent.

Of course, Portelligent's numbers - relayed by BusinessWeek - only cover the parts, not the cost off putting them together, shipping the finished product, marketing and, crucially, the cost of the software that makes the iPhone sing.

But it shows Apple is in a good position to make money on the device. Whether you accept the more conservative sales estimates or the most bullish figures, there's no doubt Apple has sold a fair few iPhones since the device went on sale almost a week ago.

Clearly, the high price of the handset is not putting buyers off to the extent that some observers anticipated it would.

Portelligent's analysis follows its own disassembly of Apple's device, just one of many that surfaced in the days following the iPhone's debut.

According to the breakdown, the iPhone's touchscreen, said to be made by Germany's Banda, is the most expensive component, coming in at approximately $60 a pop.

While the handset is understood to be powered by a Samsung-made ARM chip, a peek a the firmware apparantly reveals the CPU to contain an integrated PowerVR MBX graphics chip. Samsung licensed the MBX design from developer Imagination Technologies a few years back.

Related review

Apple iPhone

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.