iPhone 3G Manufacturing Cost of $100?

[Anuba]

What other phone has 16gb of memory, much less 32gb?

That's a good point. I think Apple users are a bit spoiled and somehow assume that iPod storage capacity is the norm.

Take the SonyEricsson X1 ("Xperia"), one of the supposed iPhone killers coming out this year. The specs are quite impressive; 800x480 touchscreen (iPhone=480x320), 3.2 Mpixel camera with flash and 30 fps video recording, quadband GSM and tripleband HSDPA, full QWERTY slide-out keyboard, front-facing videocall cam, 830 hours standby time... and...

(drumroll)

...400 MB storage. The iPhone 16 GB has 40 times more.

So it's on par with or outspecs the iPhone in every way, and SonyEricsson considers 400 MB the appropriate storage capacity to match those specs.

One blogger referred to this as "whopping": "...Simply put, you need a very huge storage capacity for your mobile phone, and fortunately Xperia X1 has it. It has a whopping 400MB internal memory, more than enough to store video games, songs, and even short movies."

 

[ChrisA]

I don't get the rationale behind switching to a plastic back.

Likely has to do with adding GPS and the fact that microwaves don't go through metal. The case has to be transparent to the signal in all orientations including laying face down on the car seat.

 

[Gravity]

As much as that sucks for us, you're absolutely right. If the 1st-gen iPhone had 32GB storage, 5MP camera, 3G data, video-conferencing, GPS, and even MMS, then what could they come up with on the new version?

I really don't think Apple was withholding features with the first iPhone... and even if they did include all of that the first time around... there's always faster processors, greater memory and smaller form factors (except for screen space) as the technologies improve. And who knows what other must-have apps they could come up with that would require newer architecture?

Erik

 

[Anuba]

Likely has to do with adding GPS and the fact that microwaves don't go through metal. The case has to be transparent to the signal in all orientations including laying face down on the car seat.

Oh, I dunno... my Navigon 8110 has a stainless steel front and the chassis must be all metal, it weighs tons. More likely it's 3G reception and battery life they want to improve. 3G cells are quite far apart in many countries and in order to squeeze out those 7.2 MB/s you need a strong signal and a clear path... I'll be interested to see the SAR value on this one, hopefully it's not like sticking your head in a microwave oven.

I really don't think Apple was withholding features with the first iPhone... and even if they did include all of that the first time around... there's always faster processors, greater memory and smaller form factors (except for screen space) as the technologies improve. And who knows what other must-have apps they could come up with that would require newer architecture?

Erik

Well, you gotta admit withholding 3G was a pretty spaced out decision when it's been the standard in many parts of the world for several years. Granted, it's an American company but they operate internationally and they must have known that their other markets worldwide would be pinching their arms in disbelief.

It's a very peculiar mix of new and old, really. The touchscreen interface, OS, software and storage capacity = 3 years ahead. 2 Mpixel cam, no front-facing cam, no flash, and up until recently no 3G = 3 years behind.

 

[!¡ V ¡!]

...400 MB storage. The iPhone 16 GB has 40 times more.

So it's on par with or outspecs the iPhone in every way, and SonyEricsson considers 400 MB the appropriate storage capacity to match those specs.

One blogger referred to this as "whopping": "...Simply put, you need a very huge storage capacity for your mobile phone, and fortunately Xperia X1 has it. It has a whopping 400MB internal memory, more than enough to store video games, songs, and even short movies."

If I am not mistaken many phones have the option to expand with miniSD anywhere from 2-8GB chips.

400 MB is the "internal" memory, similar to digital cameras with 16-64MB of internal memory and expandable up to 8GB.

The iPhone without a mniSD slot is locked in the memory dept.

Plus, no disk mode on iPhone and iPod Touch make it seem like one critical thing is missing. When disk mode is activated, count me in for either product.

 

[WildCowboy]

$100 on the price of parts might seem small but that is still high for them. whether the phone is subsidized or not, $100 is 25% of $400 which seems like an average cost of product for a company.

Teardowns on iPods have suggested a BOM cost of closer to 40-50% of the retail price, while Macs are generally closer to 50-70%, so assuming the $200 carrier subsidy on the iPhone 3G, the gross profit margin is much greater than on Apple's other devices.

 

[bmms8]

Teardowns on iPods have suggested a BOM cost of closer to 40-50% of the retail price, while Macs are generally closer to 50-70%, so assuming the $200 carrier subsidy on the iPhone 3G, the gross profit margin is much greater than on Apple's other devices.

hey thanks for the clarification, but it makes no sense how they can make any profit if any mac is 70% bom. i might be wrong, just my opinion.

 

[jonnylink]

hey thanks for the clarification, but it makes no sense how they can make any profit if any mac is 70% bom. i might be wrong, just my opinion.

I have to agree with you. I'd like to see a reference for the 70% number. Got a link?

I seem to remember reading 50% being par for Apple.

 

[WildCowboy]

Well, here's one from the original Intel iMac in 2006. The low-end model had a BOM of $873 and retailed for $1299...that's 67%. Close enough?

 

[fredfnord]

Just gotta ask...

> ...no front-facing cam...

Are we talking about people wanting a phone with both front-facing and rear-facing cams? Or just a front-facing cam? Because I would certainly pay less for a phone with a camera on its front than I would for one with a camera on its back.

Video-conferencing sounds about as appealing to me as boiled spinach, but I like being able to take pictures of things with my phone. Trying to take a decent picture of anything aside from myself with a front-facing camera sounds less like a useful tool and more like a somewhat inadequate form of masochism. Kind of like, I dunno, dribbling warm water on someone's arm, instead of hot wax. I.e. not at all interesting even if you are into masochism, which I'm not, in particular.

-fred

 

[MacBoy08]

wow

If this is the case, there's absolutely no reason Apple shouldn't already have a $399 32GB model on the market RIGHT NOW except for the fact that they want an upgrade path for January (storage) and then again next june (camera stuff). Pathetic.

hey what color shorts am I wearing, and how many fingers am i holding up..




its pathetic to see someone who thinks they have all of the answers...just sit back and enjoy the show man, dont act like zeusius and try to wow us with your probably innacurate insider info.


thanks.