For anyone wondering: Yes, Apple will be able to turn a profit on the iPhone 5. The EETimes reports that TechInsights’ priliminary estimate of the 16GB iPhone 5’s bill of materials totals $167.50, more than previous models but still significantly less than its $649 retail price. Among other things, TechInsights found that Apple’s A6 processor costs $28 (versus $21 for the A5 chip), its four-inch display costs $18 (the old 3.5-inch display cost $15) and its LTE modem costs $25 (its previous Qualcomm 3G modem cost $14). Overall, the bill of materials for the iPhone 4S cost $132.50, or $35 less than the iPhone 5. Read the full story at Boy Genius Report.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.