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iPhone 3GS: $179 to build says iSuppli


iSuppli's just released its estimated cost of Apple's newest offering, the iPhone 3GS. Total costs for the 16GB model costs $178.96 to manufacture, according to them -- give or take $4.63 more than the 8GB iPhone 3G estimate from last year. It's also about $40 more than iSuppli's most recent manufacturing estimate for the Palm Pre. The estimate covers only materials, and doesn't take into account various costs such as shipping and distribution, packaging, royalty fees or all the miscellaneous accessories included with each handset. Regardless, it definitely looks like Apple's managed to step up the innards of the phone without a significant bump in costs.

Palm Pre: $138 to build according to iSuppli


With the economy in the tank (still) and the heat on, cost and profit margins are more important than ever to companies hoping to stave off the inevitable, apocalyptic doom of recession. Well, iSuppli's released an estimated report of how much its costing Palm to cobble together the Pre -- about $138, as it turns out. iSuppli has positively identified just two of the Pre's suppliers thus far -- that Texas Instruments OMAP chip, which runs Palm $11, and Qualcomm's wireless chip -- but they've formed a general picture of what's under the hood for the estimate. That price is about 46 percent of the $300 iSuppli suggests Palm will be charging Sprint for the Pre (a number that's completely unconfirmed at this point). To put it in perspective, the BlackBerry Storm costs about $203 to make and was sold for $199 initially, the G1 clocked in at $144, while the iPhone 3G costs Apple an estimated $174.33. Of course, we have no way of assessing the accuracy of the estimate yet, but if it's in the neighborhood of correct, Palm's profit margin should be pretty healthy.

iSuppli: $359 Kindle 2 costs $185 to build, Whispernet says shhh

Ever wonder how Amazon was able to bundle unlimited Whispernet (Sprint EVDO) with the Kindle 2? To start with, eBooks are small, really small in the context of digital media downloads (music, audio-books, movies) so there's little impact to the Sprint network. Kindle 2 is also sporting a pretty healthy markup to cover the data fees. After conducting its own teardown and analysis, iSuppli estimates that the Kindle 2 costs just $185.49 for materials and manufacturing. The estimate does not include the costs related to marketing, distribution, class-actions, or the pain you feel at having learned the true definition of free. Full press release after the break.

$22 iPod Shuffle shocker: components tiny, inexpensive


When iSuppli recently reported that the parts and packaging of the iPod Shuffle 3G cost only $21.77, a mere twenty-eight percent of the unit's retail price, PMP Today asked a most reasonable question: Where are the new Shuffle KIRFs? According to Business Week, Samsung is making a killing on these things, supplying not only the unit's ARM-based processor ($5.98), but the storage ($6) on at least a few of the units as well. The lithium ion battery, described by iSuppli as "the smallest we've ever seen," has an asking price of $1.20. As for things like capacitors and resistors, they're being described as "about the size of a grain of salt" and cost fractions of a penny each. Of course, none of this takes into account things like paying engineers and designers, and royalties paid to patents owned by other companies. Not that the KIRFsters of Shenzhen worry about these sorts of things. Maybe the wherewithal required to produce a phony Shuffle is (for the time being) beyond the capabilities of the pirates? Or maybe they're just having too much fun cranking out NOKLAs.

Read - iPod Shuffle 3G Costs $22 to Make: Where are the Clones?
Read - Deconstructing Apple's Tiny iPod Shuffle


Intel rated leading chip manufacturer again, AMD slips out of top ten

Intel rated leading chip manufacturer again, AMD slips out of top ten
This economic crisis has been tough for nearly every business worldwide, perhaps best evidenced by the number of corporate spats we've seen develop lately as everyone gets more and more protective of their respective turfs. While Intel and NVIDIA have lately been engaged in an epic war of PowerPoint presentations, fewer disputes have been bigger or longer-running than the one between Intel and its more direct competition, AMD. That "us inside" company just earned some bragging rights, being named the biggest processor manufacturer in the world again by iSuppli, with a 13.1 percent global market share. AMD, which came in tenth last year, dropped down to the number twelve position in 2008 after its revenue declined 7.8 percent compared to 2007. News was also bad for Texas Instruments, which dropped a position largely thanks to the success of mobile processors from Toshiba and Qualcomm. Don't be so glum, TI, maybe successes from Russell Crowe's favorite flavor of pico projector will make up for the difference.

iSuppli: BlackBerry Storm costs $4 more than its purchase price to build


In a fiscal climate where profit margin reigns intensely supreme, we've got yet another dollop of bad news to heap upon the parfait of pain that is the $199 (after $50 mail in rebate) BlackBerry Storm. Research firm, iSuppli, estimates that the cost for the components and assembly of RIM's BlackBerry Storm are just shy of $203 -- an estimate that does not include software development and uh, bug fixing costs or those attributed to patent licensing, physical distribution, marketing or anything else in the product lifecycle. The most costly component is the $35 Qualcomm MSM7600 processor that gives the Storm its dual GSM / CDMA personality. Now, $203 isn't that big of a spread compared to the per unit cost of a $175 8GB iPhone 3G, $169 BlackBerry Bold, or $144 T-Mobile G1. However, the lost prophets profits add up quickly when you've moved over a million units globally.

P.S. We're not implying that RIM is losing money here (the price is obviously carrier subsidized), only that the Storm is likely less profitable than its peers. But without knowing what VZW pays on a per unit basis, we can't say for sure who's getting the fiscal-shaft.

PS3 teardown: 30% fewer parts, $300 cheaper

When the gang at iSuppli first tore open a PlayStation 3 back in November 2006, they pegged the cost to build the $500 model was $805 in materials. Now they're back and looking inside the $400 version, which they estimate is $448.73 in parts -- still a loss leader for the company, but only by about one Ulysses S. Grant this time. The number of components has also dropped from 4,048 to just 2,820, and both the Cell processor and NVIDIA GPU have slimmed down from 90nm to 65nm. They suspect Sony might be able to lower costs and turn a profit sometime in 2009, but while you may be rooting for this generation's underdog, don't get your hopes up for a price drop any time soon.

iSuppli says T-Mobile G1 costs $144 to make, nothing to love

Teardown specialist iSuppli is at it again, digging through the G1's guts this time around in an effort to wrap its inquisitive brain around the inaugural Android handset's bill of materials. The result? $144, which naturally doesn't reflect HTC's R&D -- an additional expense that might have been unusually low for the G1 considering HTC's overwhelming expertise in manufacturing all things mobile. For the record, this is about $30 less than iSuppli's July estimate for the 8GB iPhone 3G, though the comparison isn't terribly fair considering that the G1 has a mere pittance of internal storage by comparison. There's no telling what T-Mobile pays HTC for each and every G1 it sells, but we pay $179 (or less) on contract -- so it seems HTC is making itself a nice little profit right out of the gate and customers aren't footing much of the bill. At least, not until they've gone a few months into their two-year agreements.

Over half of 2009 vehicles in America will offer iPod support


And we're not talking about that 3.5mm-to-3.5mm trick, either. No sirree, we're referring to bona fide iPod integration, and 2009 marks the first year where over half of all US-bound automobiles are expected to offer optional support for Apple's prolific PMP. When looking at 2008 model year vehicles, just 39% offered tight iPod integration, but according to Phil Magney, vice president of automotive research for iSuppli, the "automotive industry is at the point where in-vehicle technologies -- or the lack of them -- are influencing sales." Furthermore, Bluetooth is expected to be in 82% of 2009 US vehicles (optional or standard), and just so we're clear, we're talking all cars, not just the luxury brands. Unfortunately, no data was provided for expected compatibility with the DJ Ditty.

[Via Wired, image courtesy of JPMagazine]

iSuppli sez iPhone 3G is running Apple $53 less than original


Tech firms seem to have this uncanny ability to significantly boost functionality while significantly reducing cost with each new generation of a product -- and you'll never believe this, but it looks like Apple is no exception. The teardown and bean-counting experts over at iSuppli are at it again with the iPhone 3G, finding that the whole kit and kaboodle tallies up to just $174.33 (give or take) for the 8GB model in material and manufacturing costs. That works out to about $53 less than iSuppli's estimate for the original 8GB model back in June of last year, an amount saved in part by moving to a single 10-layer circuit board (versus a pair of 6-layer boards). The firm figures Apple's shelling out about $50 in royalties for each iPhone 3G that rolls off the assembly line, leading to a grand total of $224.33 in costs. Offset that with a healthy AT&T subsidy, and all told, we're looking at something like a 55 percent margin to help Steve finance his next round of black turtlenecks.

[Via AppleInsider]

AMD slips out of iSuppli's top 10 semiconductor suppliers

iSuppli -- the market research firm that keeps us up to speed on exactly how much each iPod pads Steve's wallet (among other things) -- has recently published its list of top players in the 2007 semiconductor market, and lo and behold, AMD isn't even in the top ten. It's noted that while Intel's chip revenue is expected to rise 7.7-percent in 2007, AMD's sales are predicted to sink some 22.7-percent for the year. Of course, AMD had only risen into the upper echelon of this list for the first time last year, but now it has fallen back to 11th, trailing the likes of Samsung, Toshiba, STMicroelectronics, Infineon, Sony, NXP, Intel and Texas Instruments. If you're interested in seeing the details behind the numbers, be sure and hit the read link below. Oh, and please do keep the fanboy comments respectable, will ya?

[Via PCWorld]

iSuppli: new iPod nano costs Apple less than $83 in components


The iPod nano is the "most popular music player in history" according to Steve Jobs. So there's nothing like an iSuppli teardown of the new, 3rd gen device to get the ol' analyst juices flowing. So get this: iSuppli claims that for every $149 4GB nano and $199 8GB nano sold, Apple's components costs are just $58.85 and $82.85, respectively. That's an 18.5% lower direct materials cost than the previous nano. In other words, a substantial increase in margins for what should be a tidy boost in Apple profit after covering R&D costs. The teardown also indicates that Apple has once again opened the money trough to a whole new bevy of suppliers including Dialog Semiconductor, Intersil, and Synaptics. Micron is the big winner here as they supply the NAND flash storage whereas Toshiba provides it for the iPod touch. Could be that the effects of Samsung's NAND factory power outage are starting to show. Enjoy it while you can suppliers, chances are you'll be begging for Apple's business once the next round of product refreshes goes down. Bill of materials after the break.

50-percent of your iPhone purchase to pad Apple's wallet?

Sure, LG's KE850 Prada handset will set users back a cool $778, and the Google Switch just might pop in to make things a bit more interesting, but a recent research report has unveiled that Apple's sure-to-be-sold-out iPhone is a lean, mean, profit-generating machine nonetheless. While Apple's well-known for selling its iPods (and to a lesser extent, its Macs) for much, much more than it cost to manufacture, even we're a bit taken aback at how hard those corporate buyers must be workin' those suppliers on this one. According to iSuppli (no affiliation with Apple, of course), the 4GB iPhone will yield a "49.3 percent profit margin on each unit sold at the $499 retail price," while the 8GB rendition will kick back a 46.9-percent margin. You heard right, they're supposing the $499 mobile only costs Apple $245.83 to produce, while the 8GB flavor demands just $264.85. Of course, this isn't the first time a hot-selling product has been broken down by the numbers to prove just how ripped off we're all getting (if these numbers are to be trusted, that is) -- but hey, unless you've got the means to buy capacitors and LCD touchscreens by the boatload, you're probably stuck paying exactly what they ask. Plus if all this sudden competition gets a bit too heated, don't think Apple doesn't have any room to introduce a (highly desired) price drop.

Sony losing mad loot on each PS3

We all knew Sony was dropping a fair bit of cash on each PS3 sold, but we suppose we got a bit too hung up on the resultant pricetags -- the notorious $499 and $599 SKUs -- to give the actual losses much of a thought. Well, worry not Sony, iSuppli's got your back. Turns out Sony will be losing change to the tune of $241.35 for every "premium" (WiFi and 60GB HDD) console, and a whoppin' $306.85 for the bargain-basement 20 gigger. In comparison, Microsoft loses $75.70 per 360 it sells, while Nintendo is laughing all the way to the bank with a profit per Wii sold. Just in case you missed it the first time around, or fell off your chair and forgot what you were reading about: Sony will lose the equivalent (or more) to the retail price of a competing console every time a cash register rings up a PS3 sale this holiday. We suppose it's for the best, then, that Sony won't have a whole lot of 'em to hand out, since we're sure Sony's own costs will start to drop as production really ramps up next year. Be sure to peep the read link for a full breakdown of the costs.

UPDATE: Our bad, Microsoft actually makes $75.70 per 360 sold, as opposed to the $71 they were losing last year at launch.

Toshiba taking $200 loss on each HD-A1, sez iSuppli


We've long wondered how Toshiba's able to price its HD-A1 HD DVD player at $500 while the Blu-ray camp will be charging $1,000 and up for their next-gen machines, and now the eggheads over at iSuppli are claiming to have the answer. After furiously running all the numbers through their high-tech calculators, the same company that brought us breakdowns of the iPod nano and Xbox 360 production costs is estimating that it takes $674 worth of parts to build an HD-A1 -- bringing the total cost to well over $700 when you include labor, packaging, etc. -- which means that Toshiba is taking a $200 loss on each unit sold. Rarely seen outside the world of videogame hardware, this pricing strategy is usually employed to build up a customer base for the devices' highly-profitable software, but in Toshiba's case, achieving significant HD DVD penetration prior to the Blu-ray rollout was probably even more important than the few bucks they make from each HD DVD disc that gets sold. Unfortunately for those of us waiting on a burner to hit the market before making the HD optical plunge, it doesn't sound like Toshiba will also be willing take a loss on that RD-A1 introduced the other day, as its $3,400 pricetag seems to more than cover every little component they're stuffing in there.

[Via HDBeat]
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