Kuo broke down the cost of iPhone 5 components and found that the Lightning’s average sales price has risen the most compared to iPhone 4S parts. He notes that the Lightning connector costs $3.50, which is a 775 percent rise in average sales price compared to the 30-pin dock connector’s price of $0.40. The Lightning cable’s average sales price is $6.00, a 233 percent rise from the previous $1.80 standard model.
The rise in price is expected as Lightning is a new technology. It replaced the decade old 30-pin dock connector that first appeared with the third-generation iPod.
Apple’s new plug is similar in size to the Micro USB standard, but Kuo estimates that the Lightning’s specs are higher making it more difficult to manufacture. Kuo believes that the Lightning will be used at least for the next five or ten years, just like the previous 30-pin dock connector.
Other parts of the iPhone 5 have also risen in average sales price, including the sapphire camera lens cover, upgraded baseband system, the A6 processor, and the 4-inch in-cell touch panel. The second highest increase comes with the iPhone 5’s all-aluminum back casing, which costs $17, quite an increase from the $5 ‘metal band’ design seen in the iPhone 4 and 4S.
Source and Image Credit: Apple Insider