Apple Keeps Making A Killing On Overpriced iPhone 5

Apple are the most valuable tech company around the world and they are expected to do well with the Apple iPhone 5, more so as the cost of components are only about $167.59.

The Apple iPhone 5 has been out for some time now and Apple sold it starting from $199 to $399. Apple set themselves a target of selling as many at 42 million units of the phone by December 31. The main mobile carriers of Apple pay around $450 for each device that they sell.

A research company who tears down electronic products and evaluates costs took a look at the device and said that the iPhone 5 components cost around $35 more than those of the iPhone 4S. One of the biggest increases is for long term evolution, the LTE or chip from Qualcomm, as this speeds up the downloading and uploading of content. This chip and the circuitry comes in with a cost of $25, this is $11 more than the chip found in the iPhone 4S.

The A6 processor costs $28; this comes in at more than $7 than the predecessor. Apple hasn’t disclosed their manufacturer, this used to be Samsung electronics, however this time around it may be Taiwan Semiconductor Co. The design of the A6 is from ARM Holdings in the UK, they don’t have any production lines of their own.

TSMC is the biggest maker of processors for Qualcomm, along with Broadcom; they are the ones currently behind the circuit.

The engineers said that the high resolution display costs $3 to make and these come from LG, Sharp and Samsung.

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