US study puts iPhone 5S production cost at $248, nearly unchanged
NEW YORK (AP) - While the iPhone 5S includes a handful of new features that set it apart from Apple's previous model, the actual cost to make the phone hasn't changed very much, according to a new study.
An IHS teardown of the new smartphone found that the components that make up a 16-gigabyte iPhone 5S cost US$190.70. Manufacturing costs add another US$8, bringing the total production cost to US$198.70 (S$248.44). In comparison, the iPhone 5, which hit the market a year ago, cost US$197 to make.
Mr Andrew Rassweiler, IHS' senior director for cost benchmarking services, noted that the 5S includes features new to the smartphone world, such as a 64-bit apps processor and a fingerprint identification sensor, without a significant jump in costs.
The research firm also dissected a 16-gigabyte iPhone 5C, a cheaper version of the 5S, and put its total production cost at US$173.45, including US$7 in manufacturing costs.