While Apple Inc.’s relationship with Hon Hai Precision Industry Co. gets a lot of attention, the Taiwanese company accounts for only a fraction of the cost of each device it assembles.
The Chinese factories of Hon Hai, also known as Foxconn, put together iPhones and iPads, but high-cost components like chips and screens come from a range of U.S., Taiwanese and South Korean companies.
Research firm IHS iSuppli provides the following cost breakdowns:
—Basic iPhone 4S
Price: $199 with two-year contract
—Cost of components
Memory chips: $28.20
Touch-sensitive display screen: $37
Wireless chips: $23.54
Camera: $17.60
Total cost of materials: $188
What it costs Apple to have the basic iPhone assembled in a Foxconn plant: $8
—Basic iPad
Price: $499
—Cost of components
Memory chips: $30.70
Touch-sensitive display screen: $117
Battery: $32
Total cost of materials: $306
What it costs Apple to have the basic iPad assembled in a Foxconn plant: $10
AP: www.ap.org
Posted by Janine E. Mooney, Editor
April 03, 2012
