Verizon iPhone 4 Cheaper for Apple to Build

Samia Perkins - Feb 10, 2011
Verizon iPhone 4 Cheaper for Apple to Build

The new Verizon iPhone 4 costs 9% less for Apple to build than the AT&T iPhone 4, according to a teardown analysis report by IHS iSuppli. The bill of materials, or the total cost of the phone’s components, costs about $171.35 for the Verizon phone. The AT&T phone’s bill of materials costs $187.51. The total production cost for the Verizon iPhone 4 is $178.45. So why is it cheaper?

The biggest change is the antenna. With the new design, Apple walled off the Bluetooth/LAN antenna for increased performance. The most expensive component of the iPhone 4 is memory, at $40.40. The display costs $37.80.

According to Andrew Rassweiler, senior director of teardown services for IHS:

“With the CDMA iPhone 4, Apple Inc. has shown once again that it never recycles a product design. Apple’s new designs always exhibit changes, evolution and optimization. This approach is evident not only in the antenna design but also in items like the integrated GPS functionality and the shrinking of the Wi-Fi/Bluetooth combo module. As we dig deeper into our teardown analysis, we’re certain that we will find a host of other tweaks all designed to improve quality but keep costs on a steady path of decline.”

To see SlashGear’s full review of the Verizon iPhone 4, go here.


Must Read Bits & Bytes