iPhone dissected

Another site did something similar, and produced a BOM for both versions of the iPhone. Material costs for the 4 gig were about $200, and for the 8 gig $220. You can bet that when you throw in assembly, packaging, shipping, etc each of them were close to $300, meaning Apple's turning a nice profit on them (of course, i can only imagine how many millions, or billions, they spent on R&D).

 

<div class='quotetop'>QUOTE(eagle33199 @ Jul 2 2007, 03:13 PM) [snapback]471727[/snapback]</div>

If it's anything like when I hire someone for work on my house the labor is equal to the materials costs.

That's puts them at about $400 and $440.

Add the R&D et al and what's their profit? Maybe 10-20%? That's reasonable. Because they are going to make money on the iTunes and other stuff. Plus....once you get someone to buy an iPhone or an iPod....you can sell them a computer if they don't already own a Mac. I wonder how many converts the iPod generated.

 

<div class='quotetop'>QUOTE(Godiva @ Jul 2 2007, 05:01 PM) [snapback]471823[/snapback]</div>

Fortunately for Apple, it's nothing like working on your house. Labor in China is cheap, and manufacturing on this scale allows them to utilize DFMA practices. The short of it is, labor is no where near the cost of parts. The rest of it does come into play for their overall profit lines on the device, but in the end a vast majority of the elctronics we buy come with a 50% profit over the cost of parts and labor.

 

<div class='quotetop'>QUOTE(eagle33199 @ Jul 2 2007, 08:23 PM) [snapback]471956[/snapback]</div>

iPhone margins at 55%.

That's the estimate for hardware and labor. Doesn't include any licensing or any cut for at&t if there is one. So 50% is a pretty good estimate.

Now that the phone has been dissected....I wonder when the lower cost, unlocked knockoffs are going to appear.

Hackers race to unlock iPhone.

 

<div class='quotetop'>QUOTE(tag @ Jul 2 2007, 12:37 PM) [snapback]471694[/snapback]</div>

That's pretty weird. Did they have some sort of reason for taking it apart?

 

<div class='quotetop'>QUOTE(daniel @ Jul 4 2007, 12:02 AM) [snapback]472752[/snapback]</div>

It's anandtech. If it exists, they take it apart. Mostly to learn about what's inside it, see how it works, and so on. Human curiosity mostly.

To me what's weird is getting something and not wanting to know how it works.

 

<div class='quotetop'>QUOTE(daniel @ Jul 3 2007, 11:02 PM) [snapback]472752[/snapback]</div>

Because it's there.

They aren't the only ones. Plenty of tech groups bought iPhones for the sole purpose of taking them apart, taking pictures and trying to be the first to post them on the web.

What I don't get is.....paying $600 and then immediately trashing the phone. Because once they took it apart...that was it. It was pretty much destroyed. They didn't even buy the cheaper version to trash.

I understand the taking apart and wanting to see how it works. I just rebel against the expense and the permanent destruction. I've taken things apart but only after they're broken and with the hope of fixing them. I once fixed the footpedal to my sewing machine for less than $3.00. They wanted over $85 for a new one. I also fixed my ceiling fan with a $2.00 switch.

 

Yeah, I don't get the whole buying thing, then smashing thing, just to see it how it works. Although I am curious as to how it works, and all, I think I will just enjoy my phone, and the fact it does indeed, work.

 

<div class='quotetop'>QUOTE(Jonnycat26 @ Jul 4 2007, 12:13 AM) [snapback]472759[/snapback]</div>

.. Which has almost nothing to do with opening up the iPhone to itemize its inventory -- which, except for the cpu brand, was a given.

The how are the software algorithms. The truly curious will hack those. The rest of us are just engaging in a bit of voyeursim.

 

<div class='quotetop'>QUOTE(Jonnycat26 @ Jul 3 2007, 09:13 PM) [snapback]472759[/snapback]</div>

In the case of electronic devices operated by microchips, taking them apart tells you nothing about how they work.

But I guess if andantech is a web site devoted to taking things apart, then that explains it. I still think it's weird. But I understand that that is their "thing." Thanks for the explanation.

 

Maybe they wanted to find out who's making the parts, and make some wise investments.

 

<div class='quotetop'>QUOTE(hyo silver @ Jul 4 2007, 09:38 AM) [snapback]472868[/snapback]</div>

I think that's part of it. Once they released the makers of the parts, their stock went up. Plus they want to analyze the cost. Now they can estimate the approximate cost in parts and labor.

They're working on hacking the codes now. Apple is very good. But these guys want an unlocked phone and are willing to ruin a few to try to unlock them.

 

<div class='quotetop'>QUOTE(daniel @ Jul 4 2007, 10:26 AM) [snapback]472865[/snapback]</div>

Not true, actually. If you know who makes the various chips, you can often find workarounds and hacks to unlock bits and pieces, or find out where Apple's thoughts were.

For example, if you know they're using a Broadcom chipset for the BT and an Intel chipset for the WiFi (just an example), that makes things much easier if you decide to flash the whole phone and put Linux on it (to basically turn it into a less useful version of your Nokia tablet).

Another great example is your tablet... there's an FM chipset in there which Nokia had disabled. Some intrepid disassemblers were able to open it up, figure out what it was, and get a driver up and going to give everyone FM on the tablet.

Knowing the guts of any device is incredibly useful.

 

<div class='quotetop'>QUOTE(Godiva @ Jul 4 2007, 11:44 AM) [snapback]472898[/snapback]</div>

Just read that activation details have been hacked. Allows you to use wifi and some other aspects of phone without going through Apple's activation process. Hackers are anticipating full unlock of the phone over next 5 days or so.

Apple is expected to release software update tomorrow (thursday), possibly undoing some of the activation hacks.

Not only are the components of interest as Godiva mentioned, but hackers have also details on who is on design team, previous cell phone companies they have come from, and their "design habits" and patterns.

This is a high-profile hacking.

 

<div class='quotetop'>QUOTE(Jonnycat26 @ Jul 4 2007, 09:43 AM) [snapback]472920[/snapback]</div>

Fascinating. Thank you.

 

<div class='quotetop'>QUOTE(CornBoy @ Jul 4 2007, 12:20 PM) [snapback]472936[/snapback]</div>

They've got two passwords already. Alpine and dottie.

Hackers working to unlock iPhone.

Deutche Telekom gets iPhone contract in Germany That would be T-Mobile.

As for why the dissection: Among those benefitting is Samsung.

Hackers lift bonnet on iPhone