iPhone 5 only cost $270 to Build

Bloomberg has posted a chart titled “Apple iPhone 5 Hypothetical Gross Margin Analysis” which is essentially a breakdown of the component costs for the 16GB iPhone 5, which is estimated to be around $270 and $190 (excluding non-hardware cost).

The difference would leave Apple with a 56.4 percent gross profit if Apple charges a net $620, although this doesn't include marketing and some other costs. The values are likely to change and will depend heavily on Apple's goals. More RAM and more storage could increase the price.

It's not clear whether the breakdown includes assembly and other prices. Typically, IHS and iSuppli studies have priced iPhones considerably less. iPhone 4 hardware was estimated to cost about $187.51, but only in components.

The attached tabular graph presents the preliminary estimate of the bill of materials (BOM) and manufacturing costs of the iPhone 5. Bloomberg industry has estimated the cost of each component based on the manufacturer, specs and volume sourced from Apple’s supply chain contacts. It also does include how much Apple will spend on shipping and labor to build the phone, or Testing, software development, and patent licensing.

Apple isn't thought to be making any radical breaks in technology with the next iPhone but may be upgrading to an eight-megapixel rear camera and a larger screen. Higher-end models may also go to 64GB of storage.

More from case2case.net .