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The Cost Of Apple’s iPhone 3GS’s Additional Features Is $4.63 USD

June 24, 2009

The iPhone 3GS is a major improvement over the iPhone 3G, but what do all the added features cost Apple to include?

Less than a foot-long sandwich.

BusinessWeek says $4.63, to be exact, quoting an analysis from research firm iSuppli.

It costs $178.96 to build the iPhone 3GS, while the iPhone 3G costs $174.33.

Typically, costs of newer versions of products are lower than the previous ones’, but rising chip prices might have caused the higher cost of the 3GS.

BusinessWeek explains:

The 3GS comes in 16- and 32-gigabyte varieties, whereas the prior model topped out at 16 gigabytes. “It used to be that Apple could plan on doubling the amount of memory each year for the same cost,” says Andrew Rassweiler, iSuppli’s teardown manager. In the 16-gigabyte model of the 3GS, the cost of the NAND chips is $24, he says, and $46 in the 32-gigabyte version.

The phone’s Display Module – $19.25, Touchscreen Assembly – $16.00 and Application Processor – $14.46 are some of the more costly materials. The cheapest components are the Power Circuit – $1.25 and Audio Codec – $1.15. Manufacturing costs are pegged at $6.50 and unexplained “bill of materials” at $48.00.

Read the full details of the cost breakdown here.


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