- Apr 12, 2001
Businessweek reports on an iPhone tear down by Portelligent which estimates the component cost of the iPhone at $220.
It seems some guessing was still involved as the cost of the touch-screen ($60) was admittedly an "educated guess". Even the identify of the manufacturer of the screen was based on guesswork:Portelligent estimates that the cost of the materials used in the iPhone add up to about $200 for the 4-gigabyte version, which sells for $499 and about $220 for the 8-gigabyte version, which sells for $599. Their estimate doesn't include costs of final assembly, but it does give some insight into the gross margin on the device
Regardless, these breakdown costs only indicate raw component costs and do not include assembly, research, development or even boxing/packaging.Carey told BusinessWeek that his analysis found no apparent markings that identified the screen's origin. But Balda's role in the screen has been something of an open secret in the wireless industry since the iPhone was first announced by Apple CEO Steve Jobs in January.