iPhone 4 costs Apple $188

June 28, 2010 By Nick Mokey

According to a recent teardown, Apple's $599 iPhone 4 costs the company only $188 to the manufacturer, for a 69 percent profit margin.

For all the Chinese workers committing suicide over the conditions in the factories that manufacture Apple products, you would have to think the price to Apple would be pretty low. And you would be right. According to iSuppli, Steve & Co. shell out $187.51 for each of the shiny new 16GB phones, which retail for $599 apiece without contract.

The full report from iSuppli lists a full report on the cost of each individual component. The most single part shoehorned into the pocket-sized package? The 3.5-inch “Retina” display, which costs Apple $28.50.

The build cost for each iPhone has been gradually creeping up with each new generation, with the exception of the first model. According to iSuppli, the first-gen phone cost $217.73 back in 2007, clearing the way for the 3G to run for $166.31 in 2008, and the 3G S for $170.80 in 2009.

While Apple has taken considerable flak for its seemingly outrageous profit margins in the past, the Cupertino company’s take doesn’t actually deviate that far from its competitors. Back in January, for instance, iSuppli found that the $529 Nexus One cost Google only $177.15 to make – a 67 percent profit margin, compared to Apple’s 69 percent profit margin.

Showing 4 comments

selits at 10:02pm 28th June 2010 Because the materials is the only part of the actual cost of a device...
1. ianbell330 at 10:04pm 28th June 2010 What would the other cost of the device be?
2. Ben at 10:08pm 28th June 2010 Exactly, everyone seems to forget the massive amounts of R&D involves in a device like this. The piece by piece hardware cost doesn't really tell us much at all. Can we get a realistic estimate of the cost of the phone? I f the $217.73 cost of the first-gen iPhone is accurate, I really wouldn't be surprised if they made $0 on that phone once R&D was accounted for.
  1. ianbell330 at 10:14pm 28th June 2010 I agree. iSuppli who reported the amount, takes apart the phone and then figures out the costs of the materials on the open market. Obviously R&D would be a huge amount of money as well like you mention.