The iPhone 5 Costs $207 to build but Sells for $649

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The iPhone 5 Costs $207 to build but Sells for $649
Image Courtesy of Apple

We have put together a US version of the components that make up an iPhone 5, and just how much each of these cost – giving a total of how much Apple shell out to create one iPhone 5 16GB phone. As you are about to see, it shows some jaw dropping figures in the difference between the build cost and the retail cost.

The most expensive part of the new iPhone 5 is the new screen which costs $44, slightly more than the iPhone 4S, only by a few dollars.

What is perhaps more surprising is the fact that manufacturing for each iPhone 5 costs just $8

Here is the table:



Screen $44
Memory (Both NAND Flash and DRAM) $20.85
Camera $18
Battery $4.50
Processor $17.50
Wireless Hardware $34
User Interface and Sensors $6.50
Mechanical and Non-Mechanical $33
Box Contents $7
Power Management $8.50
Manufacturing Costs $8
Totals $207

What are your thoughts on this? Do you think Apple are charging way too much for the iPhone?