Analyst: iPhone Costs Only $200 To Make

Earlier today, we saw that iSupply figures each iPhone costs Apple at least $265 to manufacture, before marketing, distrubution and other operating costs are taken into account. Austin-based Portelligent, another such analyst nest, puts the number at a mere $200-220 — giving Apple a gross margin higher than actual cost of making the device.

However, the analysis was developed by rolling dice and hiring hepatomancers to inspect sheep livers for signs. Here's CEO David Carey, talking to BusinessWeek:

"The most expensive component on the phone, Carey says, is the touch screen, for which Apple tapped a little-known German concern called Balda (see BusinessWeek.com, 4/5/07, "Balda: The iPhone's German Accent"). The estimated cost of $60 per unit is mostly an educated guess. "This screen is like nothing I've ever seen before," says Carey." ... Even the fact that Balda made it, is in fact, an educated guess.

If they're even remotely accurate, however, it stamps "Denied" on claims that the phone is heavily subsidized by AT&T. Such rumors were touted as reasons why the carrier announced unpleasant iPhone-only policies as "no returns without a restocking fee" and "no employee discounts."

Taking the iPhone Apart [BusinessWeek]