The whole world seems to be obsessed with how much things cost, and the same applies to the iPhone 4. For other countries where the smartphone is not available officially yet, folks who want first mover advantage to pick up an unlocked handset will have to fork out up to $1,000 for it, which is plain insanity if you ask us. It gets worse after you realize that the iPhone 4 costs all of just $188 to build, sans marketing and promotion dollars of course. A breakdown of the components point towards the Retina Display being the most expensive component within, as it is estimated to retail for $28.50. Bear in mind that this figure is based on the $199 16GB model with a two-year service contract in the US. As for the custom-built A4 processor, this Samsung-assembled piece of silicon is estimated to go for $10.75, while its gyroscope costs less than a burger at $2.60. What do you think of forking out much more money over a 2-year contract for something which is intrinsically worth less than a couple of Benjamins?
Source: Apple Insider
By Katie Marsal
Components of 16GB iPhone 4 estimated to cost Apple $188
A breakdown of the components that make up Apple's iPhone 4 has found that the most expensive item in the device is its high-resolution Retina Display, with an estimated price of $28.50.
As first reported by Businessweek, iSuppli's teardown of the iPhone 4 found that the components inside cost an estimated $187.51. Apple's latest phone starts at $199 with 16GB of internal memory and a two-year service contract in the U.S. The cost breakdown applies to the 16GB iPhone 4.
The most expensive component is the highly touted Retina Display found on the iPhone 4. Supplied by LG Display, the component costs $28.50, iSuppli said. The custom-built A4 processor, assembled by Samsung, cost an estimated $10.75.
The newly added gyroscope in the iPhone 4 was said to cost another $2.60, in addition to the 65-cent accelerometer found in the current phone as well as previous models. The new gyroscope is made by STMicroelectronics of Geneva.
Other suppliers of the internal hardware include touch-sensitive panels from Wintek and TPK, and chips from Skyworks Solutions and TriQuint Semiconductor.
Neither Apple nor its carrier partners would comment on how much is paid by wireless providers for the unsubsidized handset. Historically, the average selling price of previous model iPhones has been around $600.
The total estimated cost is slightly higher than the iPhone 3GS, first released last year. The 2009 handset cost an estimate $179 in parts for Apple.
In fact, the price of Apple's phones has been steadily increasing over the years. In 2008, iSuppli found that the iPhone 3G carried a components cost of $174.33.
TechCrunch notes in its coverage of the report that "iSuppli is well-known for low-balling these numbers in an effort to convince manufacturers to contact them in order to connect with their preferred suppliers, so grains of salt must be taken."
