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iPhone Costs Apple $220 To Manufacture

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If you’re still in shock over the prices you actually paid for your iPhone then you should steer clear of this story. It could send you to the emergency room. Teardown firm, Portelligent, estimates that the cost of materials for the 4GB model is $200 and $220 for the 8GB model. These estimates don’t include the final build, but Apple has historically seen gross margins of 50 percent, so these estimates are probably not too far off. As if you didn’t know, the touch-screen was the most expensive component at $60 per unit. These figures make me sick to my stomach, but I didn’t buy one and 50 percent margins aren’t that out of the ordinary, either.

Taking the iPhone Apart [Business Week]

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