iSuppli’s iPhone 4S teardown reveals a BOM and manufacturing cost of $196 for the 16GB model, which is just $3 less than retail price with a two year contract! However, the 32GB and 64GB variants have a combined BOM and manufacturing cost of $215 and $254, and that’s where Apple is really making a profit.
iSuppli’s report describes the iPhone 4S as being a “wealth of innovation” due to its world phone capability and the significant change in components.
Here’s some more information on the analysis from the director of teardown services, Andrew Rassweiler:
While the iPhone 4S shares many common design elements with the two iPhone 4 models already on the market, the new device’s status as a world phone has resulted in fascinating design and component changes. Key among these changes is a custom part from Avago that helps give the iPhone 4S its unique capability to be used in multiple wireless systems globally, while still keeping costs down. In another surprise development, the 4S employs a Hynix NAND flash memory device. While IHS has already confirmed multiple suppliers for this part, it does mark the first time that IHS has identified a Hynix NAND flash in an iPhone, as opposed to devices from Samsung Electronics Co. Ltd. or Toshiba Corp. seen in all previous iPhone and iPad tear downs.
The iPhone 4S also has a unique Avago Wireless Module, which is designed to “amplify a radio signal prior to transmission”:
“What makes the converged Avago part unique is its capability to support both 2G and 3G cellular technologies across multiple bands thus reducing the number of components and PC board footprint required. While Avago is by no means the only company supplying these types of devices, it is the first to be implemented by Apple.”
With that said, Apple was able to preform significant component upgrades while still maintaining profit margins for the new iPhone 4S! Stay tuned for more Apple related news.