Teardown reveals iPhone's 90 per cent profit margin

Two major component companies set to benefit from sales of Apple's new smartphone creation.

Research firm iSuppli has conducted a teardown of Apple's new iPhone that shows the device is heavily reliant on components from the likes of Samsung and Infineon, as well as generating a stunning profit margin for Apple.

In January, iSuppli predicted a $264.85 manufacturing cost for the 8GB iPhone. After its teardown, iSuppli found that the total manufacturing cost of the 8GB iPhone was $265.83. The retail price of the phone is $599.00, resulting in a retail mark up of around 90 per cent, excluding labour and other overheads.

Below is a list of the major components of the phone, along with their costs and the percentage of their contribution to the build cost:

According to iSuppli, 4.5 million units of the phone are expected to have shipped by the end of this year, with that number rising to 30 million units by 2011.

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