iPhone 4S Bill of Materials Add up to US$188
The cost of the materials used to produce a 16gb iPhone 4S adds up to US$188. Adding $8 for the manufacturing cost, the total comes to US$ 196. This according to IHS Isuppli.
The 32gb model comes to a cost (including manufacturing) of US$215 and the 64gb, US$254.
The cost does not take into account research and development, marketing costs or even taxes. Estimates place these around US$ 4 per iPhone.
At present, the price of an iPhone 4S ranges from US$660 to US$2040 a year depending on the carrier and the plan. Apple is scheduled to release a carrier-free iPhone this November.
Until the retail price of the iPhone is released by then, the profit margin is up to conjecture but it certainly would be in the high 100 percent and up given the cost.
Apple CFO, Peter Oppenheimer said that he expects Apple to rake in US$37 billion in the next quarter.
With the buzz behind the iPhone 4S and the huge profit margin it is bringing in, there is no doubt that Apple's bottom line by the end of the year will be truly fruitful.