Apple's iPhone 4S to Achieve Healthy Profit Margins Despite Minor Updates
October 6, 2011 10:09 AM
comment(s) - last by
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]
This article is over a month old, voting and posting comments is disabled
RE: Hype by Morons...
10/6/2011 3:15:02 PM
You know why some android users are constantly buying new phones? Because there is always something better to buy. Apple on the other had throws a party to announce it is releasing hardware that might compete with other high end phones.
RE: Hype by Morons...
10/6/2011 4:25:09 PM
To add, it's not even that many Android users that are constantly upgrading. Many are happy with their current phones and those that are eligible for upgrades use them. There are those who enjoy having the latest gadget, and if they have the disposable income who am I to judge?
It's business as usual for Apple. Sell on current hardware but choosing form over function and selling the "It just works" and "it's an iphone" lines. It's fine if people want to upgrade to the newest iPhone (though it doesn't really offer much compared to the competition) but it's the smug attitude of many iPhone users and Apple followers that cause us to shake our heads.
"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone
IPhone 4S Disappoints Consumers, Investors; Siri App Kicked Out of App Store
October 5, 2011, 10:27 AM
Apple Announces iPhone 4S, Available October 14
October 4, 2011, 2:00 PM
AT&T LTE Beats Verizon LTE in Speed Tests
September 20, 2011, 10:20 AM
ZTE Nubia 5S mini LTE 4.7" Smartphone Headed to U.S. for $280 Unlocked
August 20, 2014, 10:37 AM
AT&T Will Also Receive the HTC One (M8) for Windows
August 19, 2014, 9:27 PM
Sharp's "Edge-to-Edge" AQUOS Crystal Smartphone Coming to Sprint for $239 Off-Contract
August 19, 2014, 7:31 PM
After 34 Years With Microsoft, Steve Ballmer Parts Way to Focus on LA Clippers
August 19, 2014, 4:17 PM
HTC One (M8) for Windows Officially Announced for Verizon Wireless
August 19, 2014, 12:15 PM
Quick Note: ASUS Readies Smartwatch for IFA 2014, Shows Teaser Image
August 19, 2014, 9:30 AM
Most Popular Articles
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
With USB Type-C Spec Finalized, Reversible Cables Will Soon Be Upon Us
August 13, 2014, 8:46 AM
Windows Phone, BlackBerry Smartphone Market Share Falls to 2.5%, 0.5% Respectively
August 15, 2014, 9:44 AM
Update: Samsung Gets Official With 4.7”, Aluminum-frame Galaxy Alpha Smartphone
August 14, 2014, 8:56 AM
GM Concedes That the Cadillac ELR Doesn’t Really Compete with the Tesla Model S
August 15, 2014, 5:42 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information