How Much Does Apple’s iPhone 5S Really Cost?
IHS iSuppli recently dissected and analyzed the individual components of the iPhone 5S in order to discover the actual cost of Apple’s (NASDAQ:AAPL) device. According to IHS iSuppli’s data, the 16GB iPhone 5S BoM (bill of materials) and manufacturing cost is approximately $199.
Although Apple currently sells its 16GB iPhone 5S for $649, this doesn’t mean that Apple is pocketing a cool $450 every time it sells the device. As noted by IHS iSuppli, the estimate “accounts only for hardware and manufacturing costs and does not include other expenses such as software, licensing, royalties or other expenditures.”
Even with the addition of a fingerprint scanner and a 64-bit processor, IHS estimates that the total BoM and manufacturing cost of the iPhone 5S is only $2 more than the iPhone 5. The market research firm also noted in its report that Apple was able to keep its overall costs down, even though the new A7 chip costs $6 more than the A6 chip used in the iPhone 5.