Credit: CNN Money
As mentioned in a previous blog post on the On Tonight Blog, Apple takes a big slice of the iPhone's profits.
The price of the iPhone 4s remains constant with the price of the previous iPhone 4. The iPhone 4s received some minor upgrades that are powerful, but increases production prices for Apple. The ascetics of the iPhone 4s is the exact replica of the iPhone 4. It still possess it sleek and attractive design, but the upgrades are under the hood. So what are these upgrades that will cost Apple more per iPhone 4s sold?
- A5 Processor: a major upgrade from the iPhone 4's A4 processor. Cost of A5: $26. Cost of A4: $15.
- Cellular Radio: the iPhone 4s features a more advanced Qualcomm cellular radio that is capable of operating on both GSM and CDMA. Cost of new radio: $24. Cost of older radio: $16
- Camera: the iPhone 4s received a major camera upgrade from the iPhone 4's 5 megapixels to 8 MP. Cost 8MP: $18. Cost 5MP: $14
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| Credit: Prlog |
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iPhone 4 Total Cost in parts: $179
iPhone 4s Total Cost in parts: $203
The minor upgrades in parts from the iPhone 4 to the iPhone 4s may seem insignificant but it can only entice more user to hop onto the Apple wagon. These may be small upgrades but for the same price, it may be worth a thought.
The A5 Processor is the same model found in the iPad 2, which was a significant speed increase from the iPad 1. While the A5 processor may cost more for Apple, the speed increase will attract many more geek in considering the iPhone 4s has their next handset. The new Qualcomm radio may cost Apple more per unit but producing a single version of an iPhone may lower their cost. Before, the iPhone 4 was made with a GSM chip for AT&T and later manufactured a CDMA version for Verizon. The quality of the iPhone 4s's 8MP camera will be a major attraction for many consumer this holiday season. It will cause many to reconsider buying a separate devices such as a camera.
The increased cost of the iPhone 4s may seem hefty for Apple, but they continue to sell the iPhone to carriers such as AT&T, Verizon, and now Sprint for over $600. It is only a small dent in their large wallets. Overall the small increase in cost will attract more buyer and therefore, a higher profit for Apple.
