Apple’s iPhone 4 costs $187.51 to build

Outside of the original iPhone, the iPhone 4 is now the second most expensive iPhone to be created. Most of the additional costs are being attributed to the new display, A4 processor, and gyroscope.  The iPhone 4 is costing Apple Inc. $187.51 per handset.

That’s a little bit more than we expected it to be, but clearly the innovations this time around increased the cost of the device over the 3G and 3GS models.

There’s still healthy margins for Apple, but once you start chipping away at the profit with fixed and variable costs, the profit margins may be a little smaller than the last two versions of the phone. Don’t get us wrong though, Apple’s making a killing with the iPhone 4. Considering an unlocked iPhone 4 is selling in the UK for approximately $650, Apple might want to start thinking about selling their devices unlocked in all their markets.

Reports from over the weekend have Apple selling 1.7 million iPhones in three days. That’s a hefty number of phones, making the iPhone 4 Apple’s most successful product launch to date.

Article Via Electronista

Photo Credit Martin uit Utrecht

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