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Phones

Apple iPhone 4S costs £130 to make, say researchers

The 32GB iPhone 4S costs Apple £130 to make, according to estimates, which considering the price, spells P-R-O-F-I-T for Apple.

UBM TechInsights has estimated the shiny new iPhone 4S costs Apple £132, our chums at CNET News report. That's for the 32GB model, which, considering it's estimated to sell for £579, means Apple should be making a healthy profit on each.

The estimate shows a sharp contrast with Amazon's Kindle Fire tablet, for which it's estimated the company loses $10 (£6.50) on each unit.

UBM has broken down the parts for the 32GB iPhone 4S, estimating it costs Apple about $203 to produce, which translates to about £130 in proper British money. It works out to about the same profit margin as the iPhone 4, though it's worth pointing out that this is just a preliminary estimate. It includes $26 for the A5 processor, the same as found in the iPad 2, and $31 for the retina display.

The £579 price tag on the 32GB model is again an estimate, and doesn't factor in those looking to upgrade from their existing iPhone 4.

UBM also referred to the iPhone 4S as a moderate improvement on the iPhone 4, which, judging from the industry reaction since the launch, seems to square with what most people think. The 4S packs the same A5 processor as the iPad 2, an improved 8-megapixel camera, and Siri, the voice-controlled personal assistant.

The 4S launches a week tomorrow, but you can pre-order from tomorrow. The 16GB version will cost £499 if you buy from Apple, though the networks will subsidise your purchase if you go for a hefty contract.

Will you be buying? And what do you make of that profit margin? Let us know on our Facebook page.