Quoted from VentureBeat, UBM Tech Insight analyzes that Apple should spend money of 167.5 U.S. dollars to produce an iPhone 5 16GB unlocked version.
According to Tech Insight, which are the most expensive component in the iPhone 5 is A6 processor. Components are expected to have a four-core is expected to be priced at 28 U.S. dollars.
The second most expensive component of the iPhone 5 is a 4G LTE modem from Qualcomm. It is estimated that the modem has a price of 25 U.S. dollars. From total cost of production Apple will get a gross profit of 481.5 U.S. dollars.
The gross profit margin was not entirely to Apple. They still have to pay for the marketing and promotion of the iPhone 5 is budgeted from the gross profit. However, the rest of the profit is expected to remain large enough for Apple. For comparison, Apple gets a net income of 8.8 billion dollars in the last quarter.
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