Apple’s iPhone 3G S teardown estimates cost of parts, identifies suppliers

Apple Online Store “From the outside, nearly everything about Apple’s iPhone 3G S seems nearly identical to the iPhone 3G released last year. Even Apple’s TV ads make light of this fact: The phone looks the same as before, the company says, but it does so much more. Still, all the new features in Apple’s million-selling new phone have to come from somewhere, and there have been some important changes inside the new iPhone, according to an Apple iPhone 3G S teardown analysis by the market research firm iSuppli,” Arik Hesseldahl reports for BusinessWeek.

“The company routinely takes apart popular consumer-electronic devices in order to determine the identities of key suppliers and also to estimate the costs of components. Last year a preliminary iSuppli analysis pegged the cost of the previous iPhone, the 3G, at $174.33. These estimates help financial analysts make better-educated guesses about the profit margins manufacturers make on each unit sold, though there are many costs that a teardown doesn’t address, such as software, research and development, and patent licensing costs,” Hesseldahl reports.

“Often the cost to assemble a new generation of a product is lower than it was for the previous generation. However, the 16-gigabyte iPhone 3GS actually costs slightly more to build than last year’s iPhone 3G—$178.96, a difference of $4.63. However, that is much lower than estimates for the first-generation iPhone, which pegged the cost at $220,” Hesseldahl reports.

“Some components of the new iPhone are cheaper, even though they’ve gotten better. Take the multitouch display. While Apple has improved on the screen by adding an oleophobic coating that doesn’t attract fingerprints and cleans more easily, the cost of the screen and related components have over the past year come down by $1, Andrew Rassweiler, iSuppli’s teardown manager, says, to $16,” Hesseldahl reports.

Full article, with info about iPhone 3G S component suppliers, here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

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