What is the new 3G iPhone costing Apple?

Posted by Dave Merten Apple ico Jun 15, 2008 at 1:13pm

What is the new 3G iPhone costing Apple to build? Well, according to a Austin, Texas-based teardown specialist, it could be as low as $100.00. By contrast, the first generation 8G model cost around $170.00.

Although the 3G and GPS chipsets in the new model add to its cost, Apple is saving on other components. The display that Apple paid an estimated $60 for last year, may be costing half as much this year, thanks to a learning curve and engineering changes, reports Fortune Magazine. The $100 Apple is charging for the extra memory in the $299 16GB model, probably is only costing the company $20.

AT&T and the other carriers could be subsidizing the $199 sale price by $200, according to Piper Jaffray’s Gene Munster, which means Apple may be charging its partners as much as $399 per phone.

As much profit as this new phone may generate, I believe if Apple sold the phone to anyone unlocked at $399.00, they would make even more profit. People would easily pay it. Pre-orders on eBay were fetching $500.00+.

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Dave Merten

Dave was one of the founding guides at ‘The Mining Company,’ now known as About.com, in February 1998. Dave was their ‘Focus on Mac Support’ guide. In 2004 he started ‘G5 Owners Support Group,’ and in 2005, renamed it ‘Mac Owners Support Group.’ In 2006, he started the ‘MacOSG Support Corner’ column here at Macsimum News

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