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iPhone 5s costs $191 to make, cheaper than iPhone 5: IHS

iPhone 5s costs $191 to make, cheaper than iPhone 5: IHS 1l264t

By Associated Press | Updated: 26 September 2013 10:02 IST

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While the iPhone 5s includes a handful of new features that set it apart from Apple's previous model, the actual cost to make the phone hasn't changed very much, according to a new study.

An IHS Inc. teardown of the new smartphone found that the components that make up a 16-gigabyte Review) cost $190.70. Manufacturing costs add another $8, bringing the total production cost to $198.70. 66e3s

In comparison, the iPhone 5, which hit the market a year ago, cost $197 to make.

Andrew Rassweiler, IHS' senior director for cost benchmarking services, noted that the 5s includes features new to the smartphone world, such as a 64-bit apps processor and a fingerprint identification sensor, without a significant jump in costs.

The research firm also dissected a 16-gigabyte Review), a cheaper version of the 5s, and put its total production cost at $173.45, including $7 in manufacturing costs.

Rassweiler said the 5c is basically an iPhone 5 wrapped in plastic, noting that it has basically the same features, but benefits from typical component price drops, along with its cheaper plastic enclosure.

The 5c has a starting sticker price of $549, but will sell for $99 with a two-year wireless contract. It's Apple's least-expensive iPhone ever and is an effort to boost sales in China and other areas where people don't have as much money to spend on new gadgets as they do in the U.S. and Europe. But critics have said that the phone is still too expensive to sell well in emerging markets.

IHS said that while it costs substantially less to produce an iPhone 5c than it did an iPhone 5, those costs are still on the high side.

It added that in order to merit the low-end smartphone pricing of $400 that many industry observers had expected, while maintaining typical Apple profit margins, the company would need to reduce its 5c production costs to about $130.

Monday Apple reported that it sold 9 million of the two new models since their launch on Friday - its strongest iPhone launch ever - and that demand was exceeding supply.

In midday trading, shares of the Cupertino, Calif., company slipped $5.98 to $483.12.

iPhone 5c and iPhone 5s launch in pictures

Apple iPhone 5 622l23

KEY SPECS
NEWS
Variants

Display 4.00-inch

Processor Apple A6

Front Camera 1.2-megapixel

Rear Camera 8-megapixel

RAM 1GB

Storage 16GB

Battery Capacity 1440mAh

OS iOS 6.1.4

Resolution 640x1136 pixels

More Apple mobiles price in India

Choose a variant

Apple iPhone 5s 5df5v

KEY SPECS
NEWS
Variants

Display 4.00-inch

Processor Apple A7

Front Camera 1.2-megapixel

Rear Camera 8-megapixel

RAM 1GB

Storage 16GB

Battery Capacity 1570mAh

OS iOS 7

Resolution 640x1136 pixels

More Apple mobiles price in India

Choose a variant

Apple iPhone 5c a4o4c

REVIEW
KEY SPECS
NEWS
Variants

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Solid in all departments
iOS ecosystem remains unrivaled

Bad
Not as future-proof as the 5s
Questionable value for money

Read detailed Apple iPhone 5c review

Display 4.00-inch

Processor Apple A6

Front Camera 1.2-megapixel

Rear Camera 8-megapixel

RAM 1GB

Storage 16GB

Battery Capacity 1507mAh

OS iOS 7

Resolution 640x1136 pixels

More Apple mobiles price in India

Choose a variant

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