July 24, 2024
iPhone 3G May Cost Apple Only $100

iPhone 3G May Cost Apple Only $100

Posted June 18, 2008 at 12:34pm by iClarified
The new iPhone costs Apple considerably less than the original to make, according to an analysis by Portelligent.

David Carey, Portelligent’s president, told EETimes that based on what his firm knows about the components in the 3G iPhone, the bill of materials for the new phone could be as low as $100. The first iPhone, in contrast, came with a BOM of $170.

“Apple’s really taking the gloves off on this one,” Carey told EETimes.

Carey believes the display that Apple paid an estimated $60 for last year may cost half as much this year. He also suggested that the $100 dollar price increase for the 16GB model is only a $20 cost to Apple. The estimates on the 3G iPhone are only best guesses at this time since Portelligent doesn't have an actual 3G iPhone in hand.

To make things even more profitable for Apple, Piper Jaffray’s Gene Munster suggests that carriers could be subsidizing the $199 sale price by $200 which means Apple may be charging its partners as much as $399 per phone.

“If these numbers are true,” writes the Yankee Group’s Carl Howe, “the iPhone 3G could end up being the most profitable product Apple makes.”

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iPhone 3G May Cost Apple Only $100
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Comments (3)
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flowerinline - June 19, 2008 at 3:16am
If Apple sell the iphone without a contract, like before for 500 usd imagine you how much profit would have, I really do not understand Job's marketing strategy. There is millions of people round the world who would pay the price to have an unlocked iphone, but what happens in his mind?? He conforms with so little?
rockingkev - June 18, 2008 at 8:06pm
Can anybody confirm if the 3G iPhone is unlocked here in North America or anywhere else in the world? Thanks
Atom - June 18, 2008 at 2:01pm
How will this effect your blog site? http://www.boingboing.net/2008/06/17/associated-press-exp.html
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