According to the iSuppli Teardown Analysis service, the 16-Gbyte version of Apple’s iPhone 4 carries a hardware bill of materials (BOM) cost of $187.51. This is in line with previous editions of the iPhone, as the 3GS totaled $170.80 in 2009, the 3G hit $166.31 in 2008, and the first iPhone tallied $217.73 in 2007.

“With the iPhone maintaining its existing pricing, Apple will be able to maintain the prodigious margins that have allowed it to build up a colossal cash reserve—one whose size is exceeded only by Microsoft Corp.,” said Kevin Keller, principal analyst for teardown services for iSuppli.

The redesigned housing on the iPhone 4 comprises multiple pieces, allowing it to accommodate a considerably bigger battery as well as the integrated antenna. While this adds complexity and costs, Keller said, it also elegantly uses every possible cubic millimeter for function and not just form (see the figure).

The teardown also revealed that the iPhone 4’s wireless subsection is smaller than its predecessors because of the greatly increased integration of the radio-frequency (RF) functionality into the core chipset components despite the presence of the High-Speed Uplink Packet Access (HSUPA) standard, which allows the uploading of bandwidth-intensive HD video.

“Out of the nearly 300 cell phones torn down by iSuppli, the iPhone comes the closest to integrating the entire wireless interface, including all the supporting radio-frequency modules, on a single chip,” Keller said. “This further enhances the iPhone 4’s space efficiency and serves as yet another testament to the advanced state of Apple’s design.”

The 3.5-in. high-definition Retina LCD represents the iPhone 4’s single most expensive component, costing $28.50 and accounting for 15.2% of its total BOM. It uses advanced low-temperature polysilicon (LTPS) and in-plane switching (IPS) technology and boasts 960-by630-resolution, which is four times the resolution of the 3GS model. Its most likely supplier is LG Display, iSuppli believes, though Toshiba Mobile Display also could serve as a source. 

The next most expensive single component is the NAND-type flash memory. It costs $27 in the 16-Gbyte version and accounts for 14.4% of the BOM. The iPhone 4 torn down by iSuppli featured NAND flash supplied by Samsung Electronics Co. Ltd., though Apple could be using other sources as well.

Samsung also supplies the next costliest part, the 4 Gbits of mobile Double Data Rate (DDR) SDRAM, which costs $13.80, or 7.4% of the BOM. Supplied by Infineon Technologies AG, the baseband IC is next at $11.72, or 6.3% of the BOM. The A4 applications processor, made by Samsung but using Apple’s intellectual property, follows at $10.75 or 5.7%.

The capacitive touch screen with reinforced glass cost $10.00 or 5.3%. While iSuppli could not identify its supplier, TPK and/or Balda are likely sources. The anonymous 5-Mpixel autofocus main camera cost $9.75 and accounts for 5.2% of the BOM. The Wi-Fi Bluetooth controller IC from Broadcom Corp. cost $7.80 and represents 4.2% of the BOM. Other parts include:

• The $5.80 battery, with an unknown supplier
• NOR flash, supplied by Intel Corp./Numonyx, and DDR mobile DRAM, provided by Elpida Memory Inc., at a combined cost of $2.70
• A $2.60 microelectromechanical-systems (MEMS) gyroscope supplied by STMicroelectronics
• Infineon’s $2.33 quad-band GSM/Edge transceiver
• The $2.03 main power-management IC from Dialog Semiconductor.
• A GPS chip from Broadcom costing $1.75
• A Texas Instruments touchscreen controller IC at $1.23
• Cirrus Logic’s $1.15 audio codec
• An e-compass from AKM Semiconductor Inc. at $0.70
• The STMicroelectronics accelerometer at $0.65

For more information on iSuppli’s iPhone 4 teardown, see iSuppli’s new report, “iSuppli Takes on iPhone 4,” at www.isuppli.com/Teardowns-Manufacturing-and-Pricing/Pages/iSuppli-Takes-on-iPhone-4.aspx?PRX.

iSuppli