Thursday, 26 September 2013

iPhone 5S production costs $191: Study

NEW YORK: While the iPhone 5S includes a handful of new features that set it apart from Apple's previous model, the actual cost to make the phone hasn't changed very much, according to a new study. 
An IHS teardown of the new smartphone found that the components that make up a 16GB iPhone 5S cost $190.70. Manufacturing costs add another $8, bringing the total production cost to $198.70. 
In comparison, the iPhone 5, which hit the market a year ago, cost $197 to make. 
Andrew Rassweiler, IHS' senior director for cost benchmarking services, noted that the 5S includes features new to the smartphone world, such as a 64-bit apps processor and a fingerprint identification sensor, without a significant jump in costs. 
The research firm also dissected a 16-gigabyte iPhone 5C, a cheaper version of the 5S, and put its total production cost at $173.45, including $7 in manufacturing costs. 
Rassweiler said the 5C is basically an iPhone 5 wrapped in plastic, noting that it has basically the same features, but benefits from typical component price drops, along with its cheaper plastic enclosure. 


FREE HIT COUNTERS