Apple's iPhone 5S costs $199 to build, iPhone 5C goes for $173

The iPhone displays cost Apple the most, making up $41 of the total bill, according to IHS.

Don Reisinger
Don Reisinger
Former CNET contributor Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Apple's new iPhones are costly to build, but Apple still makes some serious cash of both of the devices.

Apple's 16GB iPhone 5S costs the company $199 to build, according to data provided to All Things Digital by IHS. The 64GB option costs Apple $218 to build. The cost analysis was completed by IHS during a device teardown that it'll detail in a report on Wednesday. The company claims Apple pays $8 to assemble the units, leaving the remaining cost to parts.

In addition to tearing down the iPhone 5S, IHS reportedly examined the iPhone 5C and discovered the device costs between $173 and $183 to produce. The assembly cost on that unit is $7.

According to IHS, the devices' displays cost the most, making up $41 of the total bill.

Still, Apple is generating some healthy margins on the devices. Apple sells its iPhone 5S for between $649 and $849 without a contract, and the iPhone 5C sets customers back $549 and $649 sans contract.

Apple's new iPhones have proven popular to this point. The company announced on Monday that in their first three days on store shelves, the iPhone 5S and iPhone 5C combined to sell 9 million units worldwide, making it the best iPhone launch ever.