Competition hot among suppliers for piece of iPhone pie
The UK’s Times Online has a unique perspective on the iPhone, looking at the fight between component makers and the companies potentially vying to assemble the final product. The lucrative contracts could make or break some companies–as has been seen in the stock prices of some companies that were able to supply parts for the iPod. Some of the speculation about component prices is particularly interesting:
The most expensive component in the 8GB iPhone, according to iSuppli, is the memory card, at $70, followed by the 3.5-inch display ($33.50), the main processor ($18.50), and the wi-fi chipset ($15.35). In total the 8GB version, which is to retail for $599, should cost about $280, although that will not be confirmed until the device is released and a ‘teardown analysis’ is possible, the company said.
If Apple can indeed sell 10 million iPhones, multiplying that by $15-$70 is some serious scratch.
Companies that have already contributed components to the iPod lines have to be considered favorites for being tapped for the iPhone. Apple already has a relationship with these companies, both companies know what to expect from the other, and they’ve got proven track records. With all of the additional features possessed by the iPhone, though, plenty of new companies will be needed.
Despite the high price of the iPhone, though, Apple is notorious for driving hard bargains from component suppliers, as has been reported in their demands for drives at low prices for the iPod. With so many companies wanting to be a part of the iPhone, Apple has plenty of leverage to keep part costs down and their own margins high.
The full Times Online is available here with a list of potential companies for many components and assemblers.
Filed under: iPhone News











