According to teardown analysis from Portelligent Inc., the new iPhone 3G could
have a bill of materials as low as $100. This reduction in the cost to
build the device takes into account the increased prices for the addition of a
3G chipset and a GPS chip.
“Gen2 iPhone pricing is aggressive enough that it made me think Apple's
really taking the gloves off on this one," noted Portelligent president
David Carey. "They are probably not as worried about iPhone hardware
profits as they are about getting a piece of the action on service revenues and
getting more Macs in homes and offices all around the globe.”
This aggressive pricing is taking some money out of Apple’s coffers on
hardware sales. However, Apple will likely make up the losses on hardware sales
in revenues for software sold via the App Store. DailyTech reported that
the App Store could be a billion
dollar business for Apple by 2009.
Will Strauss from Forward Concepts told EETimes that he believes the
iPhone 3G is using an Infineon baseband and RF transceiver along with a Samsung
applications processor. Samsung launched a handset with these same parts
recently and pointed out that the cost of the Infineon chips were about 20%
less than similar chips from Qualcomm.
According to Carey, the addition of the HSPDA chipset adds $15 and the
addition of the GPS chip adds another $5. Those additional costs are offset in
part by the reduced memory pricing compared to last year. These cost figures,
of course, don't take into account development, marketing, and software costs.
quote: They are probably not as worried about iPhone hardware profits as they are about getting a piece of the action on service revenues and getting more Macs in homes and offices all around the globe.”
quote: Ironically my main worry with the 3G one is that its so cheap and good that everyone is going to have one soon
quote: The first generation phone hardware was quad-band GSM with EDGE; the second generation uses UMTS and HSDPA.
quote: How much does a steak dinner cost? $25? Yet it's raw materials only cost, what, $8?