iPhone5 Costs Around $215 To Build: Barclays Report

iPhone5 Costs Around $215 To Build: Barclays Report
<a href="https://pixabay.com/users/JESHOOTS/">JESHOOTS</a> / Pixabay

Apple Inc. (NASDAQ:AAPL) brought the iPhone 5 into the market in September last year, with many new and advanced features in a more sleak and lighter design.

iPhone5 Costs Around $215 To Build: Barclays Report

Barclays PLC (NYSE:BCS) (LON:BARC) has rolled out a long research report on the iPhone 5 Bill-of-Material today, where it outlined some approximations of the BOM for iPhone 5, according to which a relatively stable pricing has been witnessed in iPhone 5 and iPads component cost in December.

Abacab Fund Sees Mispricing In Options As Black-Scholes Has Become “Inadequate”

Abacab Asset Management's flagship investment fund, the Abacab Fund, had a "very strong" 2020, returning 25.9% net, that's according to a copy of the firm's year-end letter to investors, which ValueWalk has been able to review. Commenting on the investment environment last year, the fund manager noted that, due to the accelerated adoption of many Read More

Using Apple’s 32 GB iPhone 5 as a standard model to work out BOM for a typical iPhone, Barclays estimated $215 as the total materical cost for a typical iPhone 5 that excludes the value of warranty, manufacturing costs, significant logistics expenses and other cost components.

“We estimate that NAND Flash accounts for about 10% of the total iPhone cost, wireless components account about 16% and the display about 20% of the total.” estimated Barclays.

Barclays believes that the BOM for iPhone 5 might have declined slightly in the month of December, last year. This decrease is however independent of the logistics costs that improved over that period.

Apple Inc. (NASDAQ:AAPL)’s  revenue of September 2012 included a total of 48% iPhone sales, which formed a 58% percent of company’s profit earned that quarter.

“We estimate the iPhone and related revenue accounted for about 51% of Apple’s revenue in FY12 and will grow to about 54% of revenue in FY13.”

Barclays predicts that the costs of iPhone 5 is going to improve in the coming months as “Apple Inc. (NASDAQ:AAPL) drives component deflation with its significant buying power”

No posts to display