The Actual Cost of an iPhone 4s

Apple’s $600 cell phone actually cost 1/3 of that to manufacture! So why is it so expensive?

When we look at the breakdown of the expenses the iPhone 4s, it actually costs $203 to produce.

Memory 32GB= $38
Cellular Radios and Connectivity= $29
Camera= $18
Battery= $5
Processor= $26
Display and Touchscreen= $31
Enclosure, PCBs, Supporting Materials= $56

The iPhone is said to take 8 hours to assemble. Production cost in China is $7.10 a unit and in the United States it costs $165.67. Apple can afford these expenses, but the gross margin is higher when made in China.

Apple isn’t hurting for money, Apple can afford to produce this in the United States. Apple has sold 35 million iPhones this year. Apple benefits from this, stock shareholders benefit from this, but are consumers benefitting from this?

We could look at it one way, you are basically carrying around a little computer with you. Or we can realize that we are just paying $600 for a popular brand name.

The Agony and Ecstasy of Steve Jobs
Loren Feldman weighs in with a great audio skit originally written by Mike Daisey called Agony and Ecstasy of Steve Jobs.

This video by Mike Daisey and Rob Cox weighs in on the ethical costs of Apple Products

And this is why I don’t own an Iphone, and probably never will.

Cost estimates were completed by UBM Tech.

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Comments

  1. RBJ's Gravatar Comment by RBJ on April 30th, 2012 at 6:50 am

    Can you recommend a good American Made phone for me?

  2. mike's Gravatar Comment by mike on April 30th, 2012 at 7:19 am

    I’m curious what phone/computer/any other electronic you use. Any phone that is any good is produced in China, most at Foxconn

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