Apple's iPhone 4S to Achieve Healthy Profit Margins Despite Minor Updates
October 6, 2011 10:09 AM
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UBM TechInsights releases approximate cost of the iPhone 4S
iPhone 4S' inability to please some customers or investors
at this point, analysts predict that Apple will maintain profit margins with the few updates the 4S holds, and have even released an estimated cost of the newest mobile addition.
Technical analysis company UBM TechInsights has conducted an in-depth analysis of its database of "teardowns and trends" to release an estimated cost of the iPhone 4S, and expect that Apple can continue to carry healthy profit margins comparable to prior iPhone releases.
UBM TechInsights' report discussed the changes applied to the
such as the A5 processor, saying that they're nothing groundbreaking, but just necessary updates to stay in line with competitors.
"Just as we saw a modest technology bump from the iPhone 3G to the
, Apple is adopting the same model of iterative improvement and incrementalism as they gear up for the iPhone 5 platform," said David Carey, UBM TechInsights Vice President of Technical Intelligence. "By continuing down the hardware evolution path, more powerful and useful software such as natural voice recognition, highly-rendered gameplay, wireless video mirroring, and complex image processing all become possible. The software experience -- enabled by 'good-enough' hardware -- is arguably what customers care about most in the end."
Changes such as the iPhone 4S' compatibility across GSM and CDMA networks allowed for lowered design times and production costs because two versions of the phone did not have to be made.
UBM TechInsights also saw Apple's decision to stay away from LTE as notable.
"Apple is making a rather large statement on their
confidence in LTE
by focusing a lot of their presentation on the comparable rates of transfer of HSPA+ to LTE," said Carey. "LTE implementation has brought about concerns of power consumption, but I believe in Apple's case, the decision to shy away from LTE comes from its slow adoption. For example, AT&T, the iPhone's original carrier, has yet to introduce 4G networks to their customers."
Taking all of the above into consideration, including past trends and iPhone teardowns, UBM TechInsights estimates that the iPhone 4S' bill of materials will come to $203, where some new additions like the A5 processor will cost about $26 and the retina display will cost about $31.
UBM TechInsights [PDF]
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RE: Hype by Morons...
10/6/2011 2:42:08 PM
Its funny how people always base things on their own opinions and (lack of)experiences and never actually look at real evidence. If I did the same, I would have a different conclusion.
It turns out that I've owned a nexus one since they first became available, and I still love it. I was told about android by a friend who had a G1, who still has that. Everyone I knew who had an android phone kept them for quite a while. Everyone I know who had an iphone upgraded at the earliest opportunity possible, it was always a hot topic when a new model came out and everyone rushed to get it the day it came out. I was on a submarine, therefore lots of diversity of people from all over.
My opinion is that you are a young troll who doesn't have much extra money to go on these trips, because the trips you speak of can easily cost a couple grand, much more than a phone. I also feel as if you don't have many friends with which to make your assumptions, and your circle jerks with other iphone users doesn't prove much to me.
Personally I could care less what phones other people use, but the Iphone users are always so adamant about their phones. I never refer to my phone as "my android phone", and I don't even correct people when they call it an iphone when they see it. I'm always told how great they are and it shocks people when I tell them I have used one and it didn't impress me.
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
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