The Cost of Making Apple Products at a Glance

Given the immense amount of attention that Foxconn, the company used by Apple to put its devices together, is getting, it would ideal to know that despite the company playing a big part in the production of Apple devices, the Taiwanese company accounts for only a fraction of the cost it takes to assemble each device. The Chinese factories of Hon Hai (Foxconn) put together the iPhones and iPads for Apple but the expensive components like the screen and chips involved come from a range of U.S, Taiwanese and South Korean companies.

A research conducted by iHS iSuppli provided the figures for your perusal about what it costs Apple to put together one Apple iPhone 4S and iPad (generation not specified). A Basic iPhone 4S that is sold at $199 with a two year contract will come with memory chips at $28.20, touch screen at $37, wireless chip at $23.54, camera at $17.60 and the services of Foxconn at $8 per device which brings it up to a total of $196. As for the iPad which sells at $499, the memory chips will cost $30.70, the touch screen will cost them $117 (at this point, it would be safe to assume that they mean the new iPad), the battery at $32 and the Foxconn services will cost them $10 for each iPad which totals up at $316.