How Much Does It Cost To Build An iPhone?

by Christopher Paul on February 22, 2012

Horace Dediu, who has to be one of the best Apple analysts out there, tries to uncover what it costs Apple to manufacture the iPhone. Assuming his estimates on margins are correct at 55%, he says the cost should be around $293.

But it’s the methods he uses to break that down further I find fascinating. He assumes a steady cost of materials of around $200. That’s $93 that goes to labor, shipping, and consumer insurance or product defects. He tries to break down that number a bit more and is left asking a few more questions that he hasn’t answered yet.

But it’s a great look at what goes into the manufacturing of the device and if you’re interested in operations like I am, you’ll want to read this (and become a regular reader of Asymco).

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