iPhone 5S costs $199 to make, report says

Apple proudly declared that they successfully broke all previous opening weekend records and sold over 9 million new iPhones in 3-days. Tim Cook, Apple’s CEO, stated “This is our best iPhone launch yet… The demand for the new iPhones has been incredible, and while we’ve sold out of our initial supply of iPhone 5s, stores continue to receive new iPhone shipments regularly.”

In Canada, a 16GB base model of the new iPhone 5S costs $719 outright. The colourful 16GB 5C is $599 outright. Curious how much is costs for Apple to build each of these? Research firm IHS is set to release a report tomorrow that reveals the bill of materials pegs the 16GB 5S at $199 (USD), then of course depending on the storage rises to $218 for the 64GB version. This includes all the parts and the cost of assembly. This pricing is slightly higher from the iPhone 5S, which was estimated to cost $205 last year. Some of the reasons for the increase is due to the new higher-end A7 processor and the Touch ID fingerprint sensor.

As for the 5C, which many of the specs resemble the iPhone 5 but is ‘Plastic Perfected’, has costs coming in at $173 to $183, including parts and assembly depending on which model you look at.

Andrew Rassweiler, analyst at IHS, said “I would say that they’re almost the same phone, except that the 5S has the fingerprint sensor, the A7 processor and some newer memory chips that consume less power. Beyond that, they’re basically the same.”

Source: ATD