iPhone 5 The Most Expensive iPhone To Produce
While we all knew that the iPhone 5 would cost a bit more to produce over the current generation iPhone 4S, most of us didn’t expect the price difference to be too substantial. However, according UBM TechInsights, the total production cost of the iPhone 5, or new iPhone, comes to roughly $162.50. To put this into proportion, the iPhone 4 cost roughly $112 to produce while the iPhone 4S came in at $132.50.
The two main reasons for this price hike are the improved screen and A6 chip, which are the main performance upgrades in the iPhone 5. The A6 chip, which powers the iPhone 5, costs $28. For comparison, the A4 chip in the iPhone 4 costs roughly $14 to make, and the A5 chip in the iPhone 4S costs $21 to make. The larger screen in the iPhone 5 costs Apple roughly $3 more to produce over the standard 3.5-inch Retina display that powered the iPhone 4/4S. If you’d like to view the full list of price changes, we’ve embedded the chart below for your viewing pleasure.
Note: These prices do not include the cost of research and development which Apple put into the iPhone 5.