Nerval's Lobster writes "A physical teardown of the iPhone 5 by IHS iSuppli reveals that Apple has managed to keep its materials and manufacturing costs roughly in line with that of the iPhone 4S, suggesting that the company has managed to keep its supply chain efficient despite the new smartphone’s next-generation technology and larger screen.
The firm estimated the Bill of Materials (BOM) for iPhone 5’s low-end model at $199.00, rising to $207.00 once manufacturing costs are entered into the equation. It tallied the BOM for the 32GB version at $209.00 (or $217 with manufacturing) and the 64GB one at $230.00 (rising slightly to $238 with those manufacturing costs).
Compare that to the BOM for the iPhone 4S, which IHS iSuppli estimated at $188 for the 16GB version (rising to $196 with manufacturing costs added in), $207 for the 32GB version ($215 with manufacturing) and $245 for the 64GB version ($254 with manufacturing).
If those estimates align with Apple’s own numbers, then it suggests the company has managed to tailor its supplier contracts and manufacturing chain in such a way that its costs stay relatively level despite each new iPhone’s evolutionary hardware leap."
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