The Cost of Building the New iPhone 5S and 5C
Apple's iPhone 5S and 5C face the teardown treatment for a second time.
When Apple first announced the iPhone 5C a few weeks ago, there was a lot of shock at the price. Sure, the on-contract pricing isn't bad, but the up-front cost of the phone isn't exactly economical at $549. Especially for a phone that everyone thought would be a budget or entry-level iPhone. Yes, it seems the 'C' in 5C most certainly stands for 'color' and not 'cheap,' but how much does it cost Apple to build an iPhone 5C? Or the iPhone 5S (which starts at $649) for that matter?
According to a teardown analysis from IHS and obtained by AllThingsD, the cost of components and manufacturing for the iPhone 5C is from $173 to $183, depending on capacity and including $7 for assembly. The iPhone 5S costs at least $199 (for the 16 GB model) for components and assembly. What's more, IHS says that aside from the fingerprint sensor, A7 processor and new memory chips in the iPhone 5S, they're essentially the same phone. Of course, this is just the cost for components and assembly, and Apple has to factor other costs into the production of the iPhone, including shipping and marketing.
Apple released the iPhone 5S and 5C last Friday following a September 10 unveiling. The company on Monday revealed that it had sold nine million iPhones over the weekend, though the company didn't offer any sort of breakdown of which phone sold more.