iPhone 4S costing only $188 for Apple

It’s amazing how much that tiny device would cost its company that is selling it. Based on a market research done by IHS iSuppli, the 16GB iPhone 4S costs only $188 without taking the labor cost into consideration but nonetheless it is an amazing figure considering that the unlocked phone would cost its user at whopping $649. This would mean that the profit margin for this phone would almost reach 200% after labor.

Surprisingly, it is the Retina display that costs the most in the Bill of Materials (BOM) given by iSuppli as it costs $23 per piece. The next expensive part would be the storage module as for the 16GB version, it costs almost $20. Some people would think that the processor would cost the most but in fact, it only fared at $15. How we wish we could make an awesome desktop out of 10 of those processors. It’d only cost $150 to do it. Jokes aside, it shows how much money Apple is making out of the device and by the looks of it, millions of it has already been sold by the company. After all, it is all about the marketing and pricing strategy that Apple applies to put it at the top of the game.