iPhone 5 Bill Of Materials Estimated At $167.50

iPhone 5

Whenever Apple launches a new iOS device, it is always interesting to find out what’s the bill of materials cost of Apple’s new device. We typically have to wait for a detailed teardown analysis for it.

But this time, UBM TechInsights has published an estimated bill of materials cost for entry-level 16GB iPhone 5 based on the tech specs.

According to UBM, it will cost Apple $167.50 to make the 6th generation iPhone compared to $132.50 for iPhone 4S and $112 for iPhone 4. We’re not sure if UBM’s estimates are based on the component prices for iPhone 4S and iPhone 4 when they were launched or the current prices as we’ve bill of material costs of $188 for iPhone 4S from 2011 and iPhone 4’s $187.51 from 2010.

Here’re some interesting details from the estimated bill of materials cost for the new iPhone:

  • UBM expects Apple’s next generation A6 chip to be the most expensive component in iPhone 5. UBM estimates that the new A6 chip will cost Apple $28, compared to $21 for A5 chip used in iPhone 4S and $14 for A4 chip used in iPhone 4.
  • Qualcomm’s baseband chip for 4G LTE support is the second most expensive component in iPhone 5. UBM estimates that the baseband chip would cost Apple $25, up from the $14 chip used in iPhone 4S and $11 chip used in iPhone 4.
  • iPhone 5’s taller 4-inch Retina display will also cost Apple 20% more ($18) compared to iPhone 4S and iPhone 4’s 3.5-inch display ($15.
  • UBM also expects iPhone 5 to come with 1GB RAM, which has increased the cost for Apple by $1.

It goes without saying that UBM TechInsights’s BOM estimates do not include costs arising from labor, shipping, advertising, software development or patent licensing and so the overall costs are expected to be much higher and we’ll get a better picture when iPhone 5 is disassembled. Nevertheless, the estimated bill of materials provides an interesting perspective on the estimated profit margins that Apple stands to make from the sale of the new iPhone.

[via UBM TechInsights]