How Much Does The iPhone 5 Actually Cost Apple? Roughly $167.50

If you have been wondering how much the iPhone 5 actually costs Apple to manufacture then you will be glad to know TechInsights has done a preliminary report on materials cost for the 16GB iPhone 5. Obviously we will have to wait until Apple ships the iPhone 5 until we can get an 100% accurate appraisal, but TechInsights should not be that far off.

Apparently the 16GB iPhone 5 costs Apple $167.50, which represents about a $35 hike in price compared to the iPhone 4S. It is important to also bear in mind though that the quoted price does not include research and development, assembly, packaging, shipping, software etc.

iPhone 5 Cost To Manufacture

What has raised the price of the iPhone 5? Well, according to WSJ both the LTE circuitry and the new A6 processor are the main reason the iPhone 5 costs Apple more to manufacture, but the increased screen real estate also plays a part in the increased materials cost.

The price of an unlocked iPhone 5

One issue that has been plaguing Apple consumers is that Apple likes to really hike up the iPhone’s price when you move up the storage tiers. If you wanted to purchase a 32GB iPhone you are looking at a price hike of $100, but for Apple this represents only another $10 increase in materials. As Doug Freedman, an analyst at RBC Capital Markets, says “Apple is not exactly motivating their customer base to buy the extra storage capacity.”

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  • http://www.facebook.com/premb2 Prem Net

    Hi,
    Great job in updating all the information regarding iphone.

    Just wanted to ask if apple starts selling the unlocked iphone 5 on 21st and how do we know when apple will release iphone 5 in other countries as I’m in Thailand now?
    Just a apple fan.

  • Gokul

    Who will pay money for Apple employees and people who assembled it.
    U r not getting software and hardware engineers for cheep .you need to pay $10000 per moth for entry level degital design engineer think about higher level employees.what about operating costs

  • http://twitter.com/BlackCl0udMY BlackCl0udMY

    im in malaysia@kelantan near Kolok, the best way to get it fast is via singapore bro.