The component costs of the new 16GB iPhone 4 are roughly $188, according to research firm iSuppli. Based on their own teardown, iSuppli estimates that the iPhone 4’s high-resolution 3.5-inch “Retina display” is its most expensive component, costing an estimated $28.50. According to BusinessWeek, iSuppli estimates that the phone’s A4 processor costs $10.75, the gyroscope chip $2.60, and the accelerometer $0.65. “Over the years, the iPhone has generally tended to hover in the $170-to -$180 cost range because Apple seems to be trying to hit some kind of budget,” Kevin Keller, who helped conduct the iSuppli teardown, told BusinessWeek in an interview. Notably, iSuppli’s estimate does not include costs such as labor, shipping, advertising, research and development, or patent licensing.
Charles Starrett
Charles Starrett was a senior editor at iLounge. He's been covering the iPod, iPhone, and iPad since their inception. He has written numerous articles and reviews, and his work has been featured in multiple publications.