Yes you have read it right, according to research by IHS Apple’s new iPhone 5 16Gb cost as cheaper as iPhone 4S only $11 more are added to it. it includes all suppliers and cost of assembling, depending on whether you look at the 16GB, 32GB or 64GB model and this is also included software's, royalties, licensing and other expenses. This means that Apple is in very large profit margin, which increased more with the more expensive versions of the product as are the iPhone 5 32GB and 64GB. It means that the profit for Apple are between $442 and $611.Apple’s margins are actually improved on high-end devices according to IHS, while lower-end iPhone 5s actually cost a little bit more to make than their predecessors did at launch. It is more impressive when compared to it’s double RAM(1GB iPhone 5-512 MB iPhone S4), more expensive, larger displays, an A6 improved processor with smart cameras. One thing we can see is how prices are decreasing as time passes, since several components more powerful than the previous version, the costs are not much different.
For example the cost of NAND Flash in the iPhone 5 is about 46% of the value of the memory used by the iPhone 4S. Approximately $ 8.80 less per unit. In story to DRAM, while the iPhone 5 cost 10.40 dollars and the iPhone 4S costs 9.10 dollars. Now you can imagine how much profit is Apple getting from their new iPhone 5, as you know it broke all the previous record by selling their 2 million iPhones in 24 hours and 5 million in just three days by the weekend. Apple’s new mobile operating system iOS 6, had been downloaded for more than 100 million iOS devices in one week, this indicates how many peoples are using Apple iPhone’s.
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