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 looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner
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
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Most Popular Articles
Say Goodbye to Data Plans - Sprint and T-Mobile offer Unlimited Data
August 22, 2016, 6:12 AM
Uber - Everyone's Autonomous Car Driver?
August 20, 2016, 6:01 AM
Lenovo vs. Asus vs. HP - Best Laptop Under $500.00
August 19, 2016, 4:00 AM
2 NEW PlayStation 4 Models - Unveiling September 7th
August 23, 2016, 6:23 AM
Get Ready to wait in line – iPhone 7 due September.
August 18, 2016, 7:15 AM
Latest Blog Posts
Coming Soon - Drones and Airports
Aug 24, 2016, 12:40 PM
SolarCity’s Gigafactory: A Milesone in Emerging Technology by Lily Emamian - 15 August 2016
Aug 15, 2016, 6:30 AM
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information