The iPhone 5 is still somewhat of a mystery, but as a business plan there are a lot of people making a few educated assumptions.
Bloomberg has just put out an assumed chart of iPhone 5 costs based on inside education, and it outlines the component prices to put together a complete iPhone 5. The chart, called Apple iPhone 5 Hypothetical Gross Margin Analysis, lays out the coming iPhone bit by bit, and dollar by manufacturing dollar. These include things like the Display Assembly w/Touchscreen Controller, 16 GB of Nand Flash Memory, and an Apple A5 1 GHz App Processor. This list is still somewhat conjecture for the public, though is an educated assumption at the very least and inside information at the most.
Each component is then matched with a price from Bloomberg’s release, such as the High Resolution Camera costing $16 for Apple per iPhone. The final cost to Apple for each iPhone 5 based on these numbers is $270, but the consumer can expect a much larger figure when they are swiping their credit card. The estimates put it at a 56.4% gross margin, which clocks in at $620 when it finally hits stores. This indicates a number dichotomy that Apple has not normally utilized, so we will likely see it round out at about $600 or jump up to $700 so as to remain consistent with the history of iPhone releases.
The cost is up from the iPhone 4, but so is the expectation. With the tragedies in Japan damaging component manufactures, new demands on the market without much major innovation, and a general change in the consumer behavior, it seems as though the gross margin may have to slip if Apple wants the iPhone 5 to remain competitive in the fall. This market analysis remains hypothetical and there could still be major surprises, such as the lack of a “full fledged” iPhone 5, but there is still a great deal of truth when looking at the numbers.