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: I really just don't get it
10/6/2011 3:43:41 PM
The iPhone came out a year before Android, so no, not last year.
Apple and Google play tick tock, of course, but not everything on an iPhone was available last year.
An Android phone matching the 960x640 iPhone 4 was released only in October, three months after the iPhone and only in Japan. The more broadly available Atrix at 960x540 was only available in March, or about 9 months later.
Likewise at the time of release the iPhone 4, on several review sites, had the best camera (compared to the then king Droid X). Again, based on reviews, it took until the Atrix (9 months later) to match the camera.
Of course the Atrix is now being beat (in cores, in GPU, in camera, still in DPI, still in resolution) by the iPhone 4S.
So yes, Android did beat Apple, but not last year.
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
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
Microsoft Expands Windows Azure in Asia, Mocks iPad in New Commercial
May 23, 2013, 12:06 PM
Lenovo Reports Solid Fiscal Q4, Full-Year Financials
May 23, 2013, 9:22 AM
MSI's AMD Richland (A10)/Neptune (7/8xxxM) Gaming Notebooks Start at $1,299 USD
May 22, 2013, 3:15 PM
Apples Tries to Use Decade-Old Patents to Ban Samsung Galaxy S IV
May 22, 2013, 3:00 PM
Intel Shake-Up to Focus on Mobile, New Devices
May 22, 2013, 11:04 AM
Report: DISH CEO Makes Aggressive $2B USD Bid for LightSquared's Spectrum
May 20, 2013, 10:25 PM
Most Popular Articles
High School Student Creates Storage Device that Can Charge in 20 Seconds
May 20, 2013, 6:51 AM
Seawater Cooling Saves Data Center Big Bucks, Energy, Despite Jellyfish Issues
May 17, 2013, 3:23 PM
Newegg Legal Chief: "We don't Feed the Trolls"; Defeats Bell Lab Shell Comp.
May 17, 2013, 10:11 AM
Former Intel CEO Regrets Passing Up on iPhone Gravy Train
May 17, 2013, 11:46 AM
NASA Awards $125,000 Grant for 3D Printed Food on Long-Term Space Travels
May 21, 2013, 1:32 PM
Latest Blog Posts
Lumosity: Does it Work?
May 22, 2013, 8:20 PM
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information