iPhone 4 is Cheaper. The iPhone 4 Parts Cost $188

By Sidharth | Apple

While once again iPhone 4 succeeds in uplifting its product hype, its time to dig deep into iPhone 4 and note yet another interesting observation that comes from a market research company, iSuppli.

Previously we have seen the iFixit iPhone 4 teardown featuring the pics of iPhone 4 parts, and now iSuppli estimates the real cost of iPhone 4 parts. And it is said to be $188 only.

So the iPhone 4 is Cheaper?

The A4 processor costs around $10, the gyroscope chip, as mentioned previously, is only of $2.60. So Apple guys are making just over 10 bucks per unit sale? Well, not exactly.

Isn’t $199 the actual price of Apple iPhone 4? $199 is the subsidized price of Apple iPhone 4, and the actual retail price comes to $599 that includes two years of AT&T contract.

Seems like $400 profit from a single iPhone 4 that is being sold — its not marginal but monstrous profit! This observation comes from a reliable company who are into product research markets, but they are missing the whole point here i.e., the research and development work, the design, patent and the trademark cost, marketing of iPhone 4 costs thousands of dollars. And not to forget the wages for the employees.

Of course, Apple does have it’s share of profits from Apple iPhone 4. But not that huge. Although it deserves to make profits for bringing in such a slick quality product for the consumers. Meh.. Steve Jobs’ not an idiot.

I love video calling, sleek design, movie editing features of the iPhone. Although there is no exact release date of iPhone 4 in India, this is one product that is on top of my wish-list and I plan on buying it very soon!

About the Author

Hi, I am Sidharth. Full-time blogger. Editor of Blogote. And a self-proclaimed geek!

Leave a Comment:

Leave a Comment: