Although it has practically the same functionality and a comparable bill of materials (BOM) as the previous model, the new code division multiple access (CDMA) version of Apple’s iPhone 4 carried by Verizon Wireless includes significant changes in its design and component section, according to IHS iSuppli teardown analysis (see the figure).

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The latest version of the iPhone 4 boasts a BOM of $171.35, which is less than the $187.51 cost of the previous model. After adding manufacturing expenses, the total production cost for the CDMA iPhone 4 amounts to $178.45.

“Apple’s new designs always exhibit changes, evolution and optimization. This approach is evident not only in the antenna design but also in items like the integrated GPS functionality and the shrinking of the Wi-Fi/Bluetooth combo module. As we dig deeper into our teardown analysis, we’re certain that we will find a host of other tweaks all designed to improve quality but keep costs on a steady path of decline,” says Andrew Rassweiler, senior director, teardown services, for IHS.

The cost assessment by IHS iSuppli is preliminary and accounts for only hardware costs, not taking into consideration other expenses such as software, licensing, and royalties.

Although it has practically the same functionality and a comparable BOM as the previous model, the CDMA version of the iPhone 4 carried by Verizon Wireless includes significant changes in its design and component section, according to HIS iSuppli teardown analysis.

The original iPhone 4 was heavily criticized for the signal integrity issues that occurred when users held the handset in certain ways, so the newest iPhone 4 has a redesigned antenna. This version uses a separate Bluetooth/WLAN antenna, whereas the first iPhone 4 featured an all-in-one approach combining global positioning system (GPS), Bluetooth, and wireless local network into one segment of the antenna superstructure that was integrated into the iPhone 4’s enclosure.

“Apple has decided to isolate the Bluetooth/WLAN antenna from the enclosure/antenna assembly,” said Wayne Lam, senior analyst, competitive analysis at IHS. “This design change leaves the top enclosure antenna segment to serve primarily as the GPS antenna and probably also as CDMA diversity receive antenna. The use of antenna diversity is significant because this scheme improves signal reception performance.”

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