The cost of making iPhone 5S and 5C

Apple is reaping hundreds of dollars from sales of its latest top range iPhones. If the data from AllThingsD is anything to go by, then Apple has set a profit margin of about 64% ($350) per iPhone 5C and 66% per iPhone 5S ($430). With over 9 million handsets sold in just two days of sales launch, Apple has already pocketed well over $3 billion in gross profits in under three days!


AllThingsD has reported on findings from IHS that “the results of two teardown studies show that, aside from the most obvious differences, the two phones [iPhone 5S and 5C are very much alike, internally. ” AllThingsD also add that “Apple spends at least $191 on components to build a 16 gigabyte iPhone 5s. The cost rises to $210 for a 64GB unit. The cost of assembly adds another $8 per unit, bringing the range to between $199 and $218.”

The initial report from IHS shows that iPhone is basically overrated, thanks to iSheep. Normally profit margin for high end phones from other companies is at 30% markup.

You can read the rest of the report here.


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