Simple cost breakout of Apple’s iPhone


Came across this article on about the margin and cost breakout of the iPhone by Apple.  In summary, it states that based on the 4GB iPhone (priced at $499), the component costs are approximately $229.85 (46% of price), with assembly cost at about $15.90, raising the total manufacturing price at $245.83, giving it approximately a 50% margin.

With 8GB iPhone (priced at $599), component costs are $264.85 (44% of price), with assembly costs of $15.98, giving it a total manufacturing price of $280.83, with approximately 53% margin.  According to iSupply, the WiFi chip would be about $15.35, with the 8GB flash memory at about $70 (at current costs). 

Certainly the price of the phone will come down sometime after it is released on the US market in the summer of 2007, with most high end phones getting a 20% gross margin – pricing the 8GB iPhone at about $350. 

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  1. Simple cost breakout of Apple’s iPhone | iBIT

    January 18, 2007 @ 8:47 pm


    […] Source: sunnyahn Filed under Blog by kgb […]

  2. sunnyahn

    January 19, 2007 @ 11:37 am


    Additional costing information on various mobile phones can be found on the portelligent website. Very good at breakout of cost components and manufacturers used within various devices.

  3. Blue Haven

    March 23, 2007 @ 3:34 am


    I expect that the version 1 of the iPhone will be less successful than expected. I’m holding out for, at least, V2. Why? I have you looked at a V1 iPod lately? Compared to a new Nano it looks like a giant bar if soap. Apple’s products get progressively better fast. It will be worth the wait.

  4. Stella Haubrick

    July 1, 2011 @ 11:27 am


    I admire your work , regards for all the good posts .

  5. Sencart

    October 7, 2011 @ 10:29 pm


    auctally the cost of an iphone today is about 250 USD, coz many “cheap copy”s were coming out