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iPhone: the real cost inside

The cost of putting together an iPhone have been worked out by iSuppli

The 8GB Apple iPhone costs just $265.83 (£133) to put together, giving Apple a margin of over 55 per cent on its $599 (£300) retail price.

Research firm iSuppli has taken apart the iPhone to carry out a teardown analysis of its costs and components. iSuppli established that the 8GB iPhone's Bill-of-Materials and manufacturing costs were around the $265 (£133) mark - pretty much as it had anticipated back in January.

Several iPhone teardowns to identify components have already been reported, but iSuppli has broken down the Bill-of-Materials elements of major components to establish the costs.

Some of the key component costs, according iSuppli are:

  • Infineon semiconductors (digital baseband, radio-frequency transceiver and power management devices) - $15.25 (6.1% of BoM cost)
  • National semiconductors (connecting display to graphics convertor) - $1.50 (1%)
  • TPK Solutions/Balda (touchscreen display module) - $27 (10.8%)
  • Epson, Sharp and Toshiba Matsushita Display Technology Co. Ltd (touchscreen display) - $24.50 (9.8%)
  • Samsung (applications processor) - $14.25 (5.4%)
  • Samsung (NAND flash memory and DRAM) - $48 ( $24in 4GB iPhone) (18%)
  • Samsung (1Gbit of Double Data Rate SDRAM) - $14(5.3%)
  • CSR plc (Bluetooth chip) - $1.90(1%)
  • Marvell (Wi-Fi baseband chip) - $6(2.3%)