“Apple packed a lot of features into the latest version of the iPhone but managed to keep a tight lid on the cost of components that go into it. Manufacturing and components for the 8-gigabyte iPhone 3G set Apple back about $173 per unit, according to an estimate by Silicon Valley-based research firm iSuppli, due to be released June 24,” Arik Hesseldahl reports for BusinessWeek. “Comparable expenses for the earlier iteration of the iPhone were about $226, iSuppli says.”
“Falling component prices let Apple add new features, including navigation tools and faster Internet download speeds, while maintaining healthy margins, say iSuppli analysts, whose estimates are preliminary,” Hesseldahl reports.
“Consumers who purchase the iPhone in Apple and AT&T (T) stores will pay $199 for the 8GB version, but AT&T will subsidize a big chunk of the price of each phone—an estimated $499 for each device,” Hesseldahl reports.
MacDailyNews Note: Analyst estimates we’ve seen regarding AT&T subsidies range from $325 to $500 per unit.
Hesseldahl continues, “After royalties, Apple’s per-unit profit on an 8GB iPhone works out to about $281, or about 56%, in keeping with the percentage on other Apple products, iSuppli says. The figure doesn’t include other costs, including software development, shipping and distribution, packaging, and miscellaneous accessories included with each phone. Apple also pays fees to its Chinese manufacturing partner, Hon Hai Precision Industry.”
Much more, including which companies make some of the components that go into Apple’s iPhone 3G, here.