When the iPhone 5S was released last week, we saw a teardown of the handset, and now we have some details on how much the iPhone 5S costs Apple to build.
According to IHS iSuppli, Apple’s iPhone 5S costs Apple $199 to build, the cost includes $191 in components and $8 in assembly, this is for the 16GB model of the handset.
The iPhone sells for $649 without a contract, so Apple is making a healthy profit on each iPhone 5S they sell. There are also details on the cost of the iPhone 5C.
The iPhone 5C apparently costs between $173 and $183 to build, the handset retail for $549 without a contract.
Component Breakdown and Cost Analysis
The cost breakdown of the iPhone 5S reveals some interesting insights into Apple’s pricing strategy. The $191 in components includes various high-end parts such as the A7 processor, which is estimated to cost around $19, and the fingerprint sensor, which adds another $15 to the total. The display and touchscreen components are among the most expensive parts, costing approximately $41. The remaining costs are distributed among other components like the battery, camera, and various sensors.
The assembly cost of $8 might seem minimal, but it reflects Apple’s efficient manufacturing processes and economies of scale. By keeping assembly costs low, Apple can maintain higher profit margins. This strategy has been a cornerstone of Apple’s business model, allowing them to invest heavily in research and development while still delivering high-quality products.
Comparing iPhone 5S and iPhone 5C
When comparing the iPhone 5S to the iPhone 5C, it’s clear that Apple has positioned the 5C as a more budget-friendly option. The iPhone 5C, with its plastic casing and slightly less advanced components, costs between $173 and $183 to build. Despite the lower build cost, the iPhone 5C still offers a robust set of features, making it an attractive option for consumers looking for a more affordable iPhone.
The iPhone 5C’s lower cost is achieved through the use of less expensive materials and components. For example, the 5C uses a polycarbonate shell instead of the aluminum casing found in the 5S. Additionally, the 5C lacks the advanced fingerprint sensor and uses a slightly older processor, which helps reduce costs.
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Image Credit: iFixit
The iPhone 5S has been replaced by the iPhone SE, have a look at our comparison of the iPhone 5S vs iPhone SE.
The iPhone SE, which serves as the successor to the iPhone 5S, brings several upgrades while maintaining a similar form factor. The SE features a more powerful A9 processor, improved camera capabilities, and enhanced battery life. Despite these upgrades, the SE is priced competitively, making it a compelling choice for those who appreciated the design and size of the iPhone 5S but wanted more modern features.
The cost analysis of the iPhone 5S and 5C provides valuable insights into Apple’s pricing and manufacturing strategies. By understanding the breakdown of component and assembly costs, consumers can better appreciate the value and innovation that goes into each device. Whether opting for the premium iPhone 5S or the more budget-friendly iPhone 5C, Apple’s commitment to quality and performance remains evident.
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