The iPhone 4 Costs Apple $187.51 to Make

Market research firm iSuppli has estimated that the iPhone 4 costs Apple as little as $187.51 to make.

The most expensive component of the handset is its "retina display" which costs $28.50 and may have been made by LG Display, according to iSuppli. Apple's internally designed A4 processor was made by Samsung Electronics and costs an estimated $10.75

"Over the years, the iPhone has generally tended to hover in the $170-to -$180 cost range because Apple seems to be trying to hit some kind of budget," Kevin Keller, who helped conduct the iSuppli teardown, says in an interview.


In 2009, iSuppli estimated that the iPhone 3GS cost about $179 for Apple to make. Those costs have since dropped to $134.

BusinessInsider notes that these costs don't include items such as labor, shipping, advertising, software development, or patent licensing.

iSuppli used a 16GB iPhone 4 in their analysis.

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