According to UBM TechInsights, the value of the components used to make the Apple iPhone 4S comes to $203 for the 32GB model which will be sold for $299 on a subisidized basis. The most expensive part of the phone is the flash memory which costs $38 with the 3.5 inch 640 x 960 display wearing a $31 price tag. That is followed by the dual-core A5 processor, which costs $26.
Making the new iteration of the iPhone a World Phone added only $6 to the cost of a GSM-only unit, and updating the camera to an 8MP shooter tacked on $3 to the price of the components. While these are preliminary figures, they tend to back up Apple’s decision to bypass LTE or WiMax connectivity, possibly done for financial reasons.
After all, with the same amount of space, the HTC ThunderBolt has components valued at $262 according to TechInsights. That includes a LTE chipset, bigger battery and slightly slower processor than what is in the Apple iPhone 4S, no dual-mode support and a lower resolution screen.
A breakdown of the 8GB Apple iPhone 4 shows that Apple is offering the phone with smaller margins. The breakdown of this model comes out to $156 in component cost, but Apple is willing to pass up on some of its profit in order to price the phone at $99 with a signed 2-year contract.