Apple earns heaps on every 16GB iPhone 5 it will sell, with the company’s latest smartphone only costing less than $200 to build.
According to research firm TechInsights, the iPhone 5 costs Apple only $167.50 to make, which is $35 more than the $132.50 tag of the iPhone 4S.
The most valuable iPhone 5 components are its A6 dual-core processor, Qualcomm baseband chip, and 4in Retina display, which cost Apple $28, $25, and $18, respectively.
The handset’s 8MP rear-facing camera with LED flash and 1.2MP video call camera cost the company $10, whereas its Wi-Fi, Bluetooth and GPS components cost $4, and the battery costs only $3.
However, TechInsights notes that its report is an estimate only since the device has not been fully analyzed.
In the UK, this bill of materials reveals Apple makes, before distribution costs, a whopping £425 ($690) on each 16GB iPhone model it sells at £529 (around $860).
Given that 2 million iPhone 5 units have already been preordered, this means Apple is milking barrels from the latest cash cow sooner than everyone expected.
The figures prove that the iPhone 5 is the bestselling iPhone yet, but it will not hit U.K. shelves until Friday this week, 21 September.
One thing is for sure in the U.S.: Cricket Communications’ iPhone 5, which will sell on September 28 in the U.S., will shy away from standard contract prices of $199 (16GB), $299 (32GB) and $399 (64GB) of major telecoms carriers in the country.
For reference on the iPhone 5’s prepaid price, Cricket sells the 8GB iPhone 4 for $399.99 and the iPhone 4S, which costs only $132.50 to build, for $499.99.
U.S. consumers who prefer non-contract prepaid devices can likely expect pricing along those lines or higher.
Cricket’s press release follows below.
Cricket to Offer iPhone 5
SAN DIEGO, Sept. 13, 2012 /PRNewswire/ — Cricket Communications, a leading provider of innovative and value-driven wireless services, and a wholly-owned subsidiary of Leap Wireless International, Inc. (NASDAQ: LEAP), today announced it will offer iPhone 5, the thinnest and lightest iPhone ever, to customers in select Cricket markets in the U.S. beginning Friday, September 28. For more information please visit: www.mycricket.com/iphone5. For more information on iPhone 5, please visit: www.apple.com/iphone.
Cricket is the pioneer and leader in delivering innovative value-rich prepaid wireless services with no long-term contracts serving approximately 6 million customers. Cricket offers wireless voice and mobile data services over the latest, high-quality, all-digital 4G (LTE) and 3G CDMA wireless networks. In 2011, Cricket launched its award-winning Muve Music® product, the first music service designed for a wireless phone that now has more than 600,000 customers. Cricket’s innovative products and services are available at Cricket branded retail stores, dealers, national retailers and at www.mycricket.com. For more information about Cricket, please visit www.mycricket.com.