iSuppli have stripped an iPhone 4S to pieces, reports AllThingsD, and they’ve found that the bill of parts for the iPhone 4S is the same as that of the iPhone 4 — $188 for the entry level version. The Qualcomm chips account for $14 or $15 of that, $15 for the A5 chip, and $17.60 for the camera chip.
If the $188 figure is accurate, that means that Apple is bringing in just $11 for the 16GB version, though this bumps up to $154 for the 64GB edition.
Keep in mind that the price difference there has to pay for R&D, Apple Employees, shipping, assembly and everything else that goes into a phone apart from the raw materials. I wouldn’t be surprised if Apple was losing a little on the baseline iPhone, and then making it back once you start trying to feed your crippling Angry Birds addiction.
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“If the $188 figure is accurate, that means that Apple is bringing in
just $11 for the 16GB version, though this bumps up to $154 for the 64GB
edition.”—
You’re forgetting that Apple sells these to cell providers at a higher cost and the carriers subsidize the difference down to $199.
Good point, you’re very right!