iPhone 3G S has BOM and manufacturing cost of $178.96
Cost is slightly higher than the earlier 3G version, but this iPhone has more features.
Jim Carbone -- Purchasing, 6/25/2009 12:56:48 PM
The total cost for the 16 GB device is slightly higher than the version released last July, says Andrew Rassweiler, director and principal analyst, teardown services, for iSuppli, based in El Segundo, Calif. That device had a cost of $174.33.
The newest device has some significant changes in parts and suppliers from the earlier 3G model. For instance, the new 3G S uses Broadcom Corp's single-chip Bluetooth/FM/WLAN device, costing $5.95. This reflects the industry trend of moving to higher levels of integration, by putting all of these functions into one chip. The earlier 3G device used two chips for those functions. One was a Marvell Technology WLAN chip and the other a Cambridge silicon radio (CSR) Bluetooth integrated circuit (IC).
Making its debut in the iPhone line is Dialog Semiconductor with its power management IC serving the 3G S's applications processor. At an estimated cost of $1.30, the Dialog chip replaces an NXP Semiconductors device in the 3G.
Toshiba Corp. is supplying the most expensive part in the 3G S with its 16GB multilevel-cell (MLC) NAND flash device costing $24. However, the part is also available from other sources that Apple will likely use, including Samsung.
Samsung is supplying the 3G S's application processor which is prices at $14.46, the fourth most costly component in the iPhone.
The estimated cost of the device does not include the costs of software development, shipping and distribution, packaging, royalty fees and miscellaneous accessories included with each phone.
The 16GB 3G S has a retail cost of $199, the same as the earlier 8 GB 3G version.
"The actual price of the phone paid by the service provider is considerably higher, reflecting the common wireless industry practice of subsidizing the upfront cost of a mobile phone and then making a profit on subscriptions," says Rassweiler.
Click here to view the iPhone 3GS BOM
Now Playing: 
