How much does it cost Apple to build an iPhone 5?

Technology News Blog

If you were one of the lucky few to sign on to Apple's website overnight and grab a new iPhone 5 before they sold out, you likely paid anywhere between $199 and $399 for the privilege. But did you ever stop to wonder how much money Apple was making from each sale? Research firm UBM TechInsights did the math, and the final price tag to build an iPhone 5 turns out to be $167.50 — making it Apple's most expensive phone ever.

Some of the most impressive components of the iPhone 5 actually don't wind up being very expensive on their own. UBM TechInsights estimates that the new, thinner 4-inch touch display costs Apple $18 with the touch screen glass costing another $7.50. The camera runs about $10, the wifi/bluetooth/GPS costs $4, and the battery only runs $3. The most expensive part of the phone is the new A6 processor, at $28 each.

That may not seem like a large margin for Apple — just $32. But remember, that $199 you paid is just your cost for the phone with a new two-year contract. Your cell carrier had to pay Apple much more (and here's why). After all, an unlocked out-of-contract phone sells for $649, allowing the world's richest company plenty more room to get even richer.

[via CNET]

This article was written by Fox Van Allen and originally appeared on Tecca

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