Researchers at iSuppli tore down the latest iPhone to find parts from LG Display, Samsung, and Broadcom
Apple's iPhone 4 wireless handset includes components that cost as little as $187.51, according to market research firm iSuppli.
Materials and parts for Apple's (AAPL) iPhone, which went on sale on June 24, include a 3.5-inch LCD screen that Apple calls a "retina display." As the smartphone's most expensive component, it costs $28.50 and may have been made by LG Display (034220:KS), iSuppli says. The iPhone 4 sells for $199 and $299.
Research firms conduct so-called teardown analysis of consumer electronics products to determine component prices, identify suppliers, and estimate profit margins. Keeping iPhone-part prices low helps Apple wring higher profit from its bestselling product, which made up 40 percent of revenue last quarter.
"Over the years, the iPhone has generally tended to hover in the $170-to -$180 cost range because Apple seems to be trying to hit some kind of budget," Kevin Keller, who helped conduct the iSuppli teardown, says in an interview.
The estimate doesn't include costs for items such as labor, shipping, advertising, software development, or patent licensing. ISuppli analyzed a 16-gigabyte version of the iPhone 4. As with the iPad, Apple used an internally designed A4 processor that was made by Samsung Electronics (005930:KS) and costs an estimated $10.75, says El Segundo (Calif.)-based iSuppli.
Businessweek.com
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