Report: Newest iPhone model costs $179 to make

Jun 24, 2009

(AP) -- Research firm iSuppli says Apple Inc.'s latest iPhone costs just a few dollars more to make than the previous model.

That analysis comes despite the new iPhone 3GS having like a better camera and video-recording capabilities.

ISuppli said Wednesday that its breakdown of the 3GS indicates the smaller 16-gigabyte model costs $178.96, mostly for parts, including $24 for . ISuppli estimates manufacturing is $6.50 of that amount.

The new iPhone costs $199 or $299, depending on its storage capacity, when purchased with a new two-year service contract from AT&T Inc.

An earlier teardown by iSuppli estimated that the 8-gigabyte 3G cost $174.33 to build. At the time, it cost $199 with a new two-year contract. It now costs $99.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Blocks will go beyond just imagining a snap-together smartwatch

add to favorites email to friend print save as pdf

Related Stories

Apple drops price of least expensive iPhone to $99

Jun 08, 2009

(AP) -- Apple Inc. slashed the entry price for an iPhone in half and rolled out new laptops for $300 less than previous models Monday, the company's first dramatic price cuts since the recession began a year ...

Recommended for you

Samsung phones cleared for US government use

12 hours ago

Samsung Electronics Co. said Tuesday some of its Galaxy mobile devices were approved by the National Security Agency for use with classified U.S. government networks and data, a boost to the company's efforts to expand in ...

Review: Apple Pay in action

13 hours ago

If there ever comes a day I can ditch my wallet and use my phone to pay for everything, I'll look back to my first purchase through Apple Pay: a Big Mac and medium fries for $5.44. That wallet-free day won't ...

Samsung seeks boost from redesigned Note

14 hours ago

The latest version of Samsung's popular big-screen Galaxy Note has gone on sale at a crucial time for the South Korean company as it suffers a rapid decline in profit from its global smartphone business.

User comments : 0