NEW YORK (AP) — A research firm says that while the iPhone 5S includes a handful of new features that set it apart from Apple’s previous model, the total cost to make the new phone hasn’t changed much.
According to an IHS teardown, the components that make up a 16-gigabyte iPhone 5S cost a total of $190.70. Manufacturing costs add another $8, bringing the total production cost to $198.70.
In comparison, the iPhone 5 cost $197 to make.
IHS also dissected a 16-gigabyte iPhone 5C and put its total production cost at $173.45.
The 5C is Apple’s cheapest iPhone ever, but many analysts had expected it to be priced lower. But IHS says that in order for Apple to cut the price further, it would have had to lower its production costs even more.
Source: Associated Press