iSuppli has estimated how much it costs to make the new iPhone 3GS and its just slightly higher than the iPhone 3G. The dissection conducted by iSuppli Corp.'s Teardown Analysis team also eveals some interesting changes in the parts and suppliers.
"The entry-level, 16Gbyte version of Apple Inc.'s new iPhone 3G S
carries a BOM cost of $172.46 and a manufacturing expense of $6.50, for
a total of $178.96," said Andrew Rassweiler, director and principal
analyst, teardown services, for iSuppli. "This is slightly higher than
iSuppli's estimate of $174.33 for the original 8Gbyte iPhone 3G
based on pricing in July 2008. Although the retail price of the 16Gbyte
iPhone 3G S is $199, the same as for the 8Gbyte version of the original
iPhone 3G, the actual price of the phone paid by the service provider
is considerably higher, reflecting the common wireless industry
practice of subsidizing the upfront cost of a mobile phone and then
making a profit on subscriptions."
carries a BOM cost of $172.46 and a manufacturing expense of $6.50, for
a total of $178.96," said Andrew Rassweiler, director and principal
analyst, teardown services, for iSuppli. "This is slightly higher than
iSuppli's estimate of $174.33 for the original 8Gbyte iPhone 3G
based on pricing in July 2008. Although the retail price of the 16Gbyte
iPhone 3G S is $199, the same as for the 8Gbyte version of the original
iPhone 3G, the actual price of the phone paid by the service provider
is considerably higher, reflecting the common wireless industry
practice of subsidizing the upfront cost of a mobile phone and then
making a profit on subscriptions."
The table and cost data presented in this article consist only
of the iPhone 3G S's BOM. The total does not include other costs,
including manufacturing software development, shipping and
distribution, packaging, royalty fees and miscellaneous accessories
included with each phone.
of the iPhone 3G S's BOM. The total does not include other costs,
including manufacturing software development, shipping and
distribution, packaging, royalty fees and miscellaneous accessories
included with each phone.
This Year's Model
Beyond faster performance, the iPhone
3G S differentiates itself from the original 3G with the addition of
video capture, an autofocus 3-Megapixel camera--compared to 2 Megapixels
before--and a built-in digital compass. Besides these extras, the 3G S
hardware feature set is not much different from that of the 3G.
Beyond faster performance, the iPhone
3G S differentiates itself from the original 3G with the addition of
video capture, an autofocus 3-Megapixel camera--compared to 2 Megapixels
before--and a built-in digital compass. Besides these extras, the 3G S
hardware feature set is not much different from that of the 3G.
"From a component and design perspective, there's also a great
deal of similarity between the 3G and the 3G S. By leveraging this
commonality to optimize materials costs, and taking advantage of price
erosion in the electronic component marketplace, Apple can provide a
higher-performing product with more memory and features at only a
slightly higher materials and manufacturing cost," Rassweiler said.
"Nonetheless, there are a few key differences in component selection
compared to the iPhone 3G introduced a year ago."
deal of similarity between the 3G and the 3G S. By leveraging this
commonality to optimize materials costs, and taking advantage of price
erosion in the electronic component marketplace, Apple can provide a
higher-performing product with more memory and features at only a
slightly higher materials and manufacturing cost," Rassweiler said.
"Nonetheless, there are a few key differences in component selection
compared to the iPhone 3G introduced a year ago."
Broadcom and Dialog Dial in to iPhone
One of the more
noteworthy changes in hardware is the use of a Broadcom Corp.
single-chip Bluetooth/FM/WLAN device, costing $5.95. This represents
the ongoing industry trend of moving to higher levels of integration,
by putting all of these functions into one chip. Previously, to
implement these functions, the 3G employed two devices: a Marvell
Technology Group Ltd. WLAN chip and a Cambridge Silicon Radio (CSR)
Bluetooth Integrated Circuit (IC).
One of the more
noteworthy changes in hardware is the use of a Broadcom Corp.
single-chip Bluetooth/FM/WLAN device, costing $5.95. This represents
the ongoing industry trend of moving to higher levels of integration,
by putting all of these functions into one chip. Previously, to
implement these functions, the 3G employed two devices: a Marvell
Technology Group Ltd. WLAN chip and a Cambridge Silicon Radio (CSR)
Bluetooth Integrated Circuit (IC).
Making its debut in the iPhone line is Dialog Semiconductor with
its power management IC serving the 3G S's applications processor. At
an estimated cost of $1.30, the Dialog chip replaces a corresponding
NXP Semiconductors device in the 3G.
its power management IC serving the 3G S's applications processor. At
an estimated cost of $1.30, the Dialog chip replaces a corresponding
NXP Semiconductors device in the 3G.
STMicroelectronics and AKM Find Way into 3G S
To
implement the digital compass feature, the iPhone 3G S adds AKM
Semiconductor Inc.'s electronic compass and STMicroelectronics' accelerometer,
both of which are 3-axis devices. The STMicroelectronics part allows
the 3G S to determine device orientation or inclination, while the AKM
sensor detects device movement relative to magnetic north, supporting
the 3G S's capability to reorient a map displayed on the screen to
correspond with the direction the user is facing.
To
implement the digital compass feature, the iPhone 3G S adds AKM
Semiconductor Inc.'s electronic compass and STMicroelectronics' accelerometer,
both of which are 3-axis devices. The STMicroelectronics part allows
the 3G S to determine device orientation or inclination, while the AKM
sensor detects device movement relative to magnetic north, supporting
the 3G S's capability to reorient a map displayed on the screen to
correspond with the direction the user is facing.
Infineon and TriQuint Hold Down the Fort
Prior the 3G S
introduction, speculation was rife that Qualcomm Inc. might displace
Infineon Technologies AG as the supplier of the phone's critical
baseband chip. However, Infineon has held onto this critical spot with
its PMB8878 baseband chip, which accounts for $13 of the 3G S component
costs. Similarly, TriQuint has kept its slot as the 3G power amplifier
module supplier, supporting the tri-band HSPA functionality of the
phone.
Prior the 3G S
introduction, speculation was rife that Qualcomm Inc. might displace
Infineon Technologies AG as the supplier of the phone's critical
baseband chip. However, Infineon has held onto this critical spot with
its PMB8878 baseband chip, which accounts for $13 of the 3G S component
costs. Similarly, TriQuint has kept its slot as the 3G power amplifier
module supplier, supporting the tri-band HSPA functionality of the
phone.
Major Cost Drivers
Toshiba Corp. scored the biggest single design win in the 3G S, with its 16Gbyte Multilevel-Cell (MLC) NAND flash
costing $24. With the price of NAND flash having risen in recent months
due to supply constraints, this represents a lucrative design win for
Toshiba. However, while Toshiba was the supplier of the NAND in the
specific 3G S torn down by iSuppli, the part is available from other
sources that Apple is likely to use, most notably Samsung Electronics
Co. Ltd.
Toshiba Corp. scored the biggest single design win in the 3G S, with its 16Gbyte Multilevel-Cell (MLC) NAND flash
costing $24. With the price of NAND flash having risen in recent months
due to supply constraints, this represents a lucrative design win for
Toshiba. However, while Toshiba was the supplier of the NAND in the
specific 3G S torn down by iSuppli, the part is available from other
sources that Apple is likely to use, most notably Samsung Electronics
Co. Ltd.
Samsung also maintained its position as iPhone's applications
processor supplier. Priced at $14.46, the applications processor is the
fourth most costly component in the iPhone 3G S after the NAND flash,
the display module and the touch-screen assembly.
processor supplier. Priced at $14.46, the applications processor is the
fourth most costly component in the iPhone 3G S after the NAND flash,
the display module and the touch-screen assembly.
The applications processor plays a key role in the 3G S's faster
performance. In the 3G, the processor used an ARM RISC microprocessor
with 400MHz clock speed; the 3G S employs a 600MHz version.
performance. In the 3G, the processor used an ARM RISC microprocessor
with 400MHz clock speed; the 3G S employs a 600MHz version.