The Basic iPhone 5 Costs About $199 to Build

 iPhone costs

This report comes from IHS iSuppli. They have estimated the cost of building an iPhone 5.

We’re not totally sure how accurate this is, because they are only going by component costs. This doesn’t paint a full picture of what it costs to build the handset. Sure they add manufacturing costs, but Gizmodo said it best:

“it’s important to point out some very valid caveats: iSuppli bases its calculations on market prices, which are not necessarily the same as what Apple pays… because they’re Apple and can negotiate. Also remember that certain sums are not factored in, in iSuppli’s math: R&D, marketing, packaging, shipping, warranty claims.”

Just the fact that Apple can negotiate the costs for the massive number of components they will need makes a huge difference.

[via Gizmodo]

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