The Next-Gen iPhone Cost Prediction

According to analysts, the next-generation iPhone 4 could have a bill of materials costing between $169 to $175. That’s a pretty significant increase from the $156 bill of material cost to manufacture the current iPhone 3GS.

These figures are based on estimates of models using 16GB of memory. The cost could get even higher for the 64GB model, estimated at around $250.

Apple’s iPhone has been receiving much competition from Google’s Android software and this higher cost of the next generation may pose some trouble for Apple, as they will be entering the field with a gadget much more expensive than the competition.

Jeffery Brown of UBM TechInsights believes the A4 processor in the next iPhone costs Apple $16, which is about $3 more than the processor in the current 3GS model.

The biggest added cost to the new iPhone derives from it’s upgraded display, estimated at $9, which boasts a 3.5-inch LCD with a 720×480 pixel resolution.

The 5 Megapixel autofocus still/video camera would add another $4 and $2 respectively.

If Apple were to downgrade the resolution of the screen and have the casing not be as fancy they could cut the costs by roughly $20, a move that likely won’t be made as it would dissipation their loyal fans.

Source: EETimes