Early speculators estimate iPhone 5 will be cheaper than previous model

August 9, 2011


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Apple "iPhone 5" hypothetical gross margin analysis

As the iPhone 5’s inevitable launch date in late September or October draws ever closer, speculators have begun to estimate the device’s cost. An image posted on 9to5Mac and sourced from Bloomberg breaks down the iPhone 5’s individual component costs and estimates that the device may retail at $620 for a 16GB model, slightly less than $649 for the current iPhone 4 16GB model in the US.

The total cost of manufacturing a single iPhone 5 unit is estimated at $270.1. Factoring in an estimated gross profit margin of 56.4%, an unlocked iPhone 5 may be sold for $620 in the US. Across the Atlantic this may translate to a retail cost of €579 in Ireland, or even €549, with the iPhone 4 currently being sold unlocked for €599.


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Albizu Garcia

Albizu Garcia is the Co-Founder and CEO of Gain -- a marketing technology company that automates the social media and content publishing workflow for agencies and social media managers, their clients and anyone working in teams.


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