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New iPhone 3GS Cost Just $178.96 to Make; Apple Makes $420 With Each Unit Sold

iSuppli, a famous industry watcher claims that the new iPhone 3GS costs $178.96 to make, so Apple is make $420 profit with each unit sold. Turns out that the 16GB unit of the 3GS handset only costs its maker 3% more than last year’s version, which is quite good.


AT&T sells the 16GB iPhone 3GS for $199, with contract, but specialists claim that the carrier might be paying up to $600 per unit, all of the cash going to Apple’s accounts. Meanwhile, in the UK, O2 sells the new iPhone for $719.85 with a pay as you go offer, too much for the average user, if you ask me.

The reason for the low manufacturing price for the iPhone 3GS is the decrease of electronic component prices and optimization of material cost. iSuppli also claims that the most expensive component inside the handset is the 16GB Toshiba flash memory, worth $24, while the cheapest part is the Cirrus Logic audio codec, worth $1.15.

So, doing the math and taking into account the fact that Apple has already sold a million 3GS unit in 3 days, that equals with a $420 million profit for the company, according to iSuppli.

[via TG Daily]