Apple iPhone 4 parts cost around £125

iPhone - exscreenly expensive
iPhone - exscreenly expensive

iSuppli has estimated that each iPhone 4 costs Apple $187.51 (around £125) in components – with the Flash memory and the screen the most expensive parts of the next generation phone.

Given the quality of the LED screen, it is no surprise that it, along with the touchscreen glass costs an estimated $38.50 (£25.57), while the Samsung NAND Flash memory comes in at at just under £18.

A lot of focus has been put on the A4 processor – also present in the iPad – and iSuppli's teardown has put a surprisingly low price tag of $10.75 on the beating heart of the phone.

Electronics playbook

"Just as it did with the iPad, Apple has thrown away the electronics playbook with the iPhone 4, reaching new heights in terms of industrial design, electronics integration and user interface," said Kevin Keller, principal analyst, teardown services, for iSuppli.

"However, the BOM [Bill of Materials] of the fourth-generation model closely aligns with those of previous iPhones.

"With the iPhone maintaining its existing pricing, Apple will be able to maintain the prodigious margins that have allowed it to build up a colossal cash reserve - one whose size is exceeded only by Microsoft Corp."

Obviously iSuppli does not factor in all the other costs that Apple accrues, but those debits would come out of around £275 for an iPhone 4 16GB (costing £499) and £375 on an iPhone 3 32 GB.

Interestingly iSuppli's estimates suggest that this is the second most costly iPhone to produce, with only the original trailblazer costing Apple more in parts.

Patrick Goss

Patrick Goss is the ex-Editor in Chief of TechRadar. Patrick was a passionate and experienced journalist, and he has been lucky enough to work on some of the finest online properties on the planet, building audiences everywhere and establishing himself at the forefront of digital content.  After a long stint as the boss at TechRadar, Patrick has now moved on to a role with Apple, where he is the Managing Editor for the App Store in the UK.