Breakdown of an Apple iPhone 5 Component Costs

Apple(APPL) has sold millions of its famous iPhone over the years with the most recent model iPhone 5 selling like hotcakes late last year although sales volumes was not as great as expected. In China, the company sold over 2 million units in the first weekend alone.

The iPhone 5 was designed in the U.S. just like so many other Apple products but assembled in China. However assembly costs account for only 4% of the total cost of an iPhone 5. The various components of an unit come from different countries as shown in the chart below. In fact, by one study 90% of a phone’s components are from countries outside of the U.S. Apple’s iPhone 5 is also a representation of the success the globalization and the East Asian electronics production chain.

iPhone 5 Component Costs by Supplier Headquarters Location and China Assembly Cost:

Click to enlarge

Apple-iPhone 5-Component-Costs-Split

Source: DHL Global Connectedness Index (GCI), DHL


Global iPhone Supply Chain

Source: The Hindu BusinessLine

Disclosure: No Positions

Leave a Reply

Your email address will not be published. Required fields are marked *