Apple's Ł499 iPhone 4S only costs Ł130 to make, say experts

Posted by Miss UK
The news might come as an unwelcome surprise to those who queued overnight for Apple's new iPhone 4S last week - but it appears the components inside are worth just a quarter of the asking price of the phone.
A 'teardown' report from iPhone specialists iSuppli revealed the components inside Apple's new iPhone 4S cost just Ł120, with a small manufacturing cost on top.
Critics of Apple often point to the high prices of the handsets.

Samsung's Galaxy S 2, which offers comparable specs to iPhone 4S, and a much larger screen, costs just Ł400.
Microsoft CEO Steve Ballmer famously dismissed the first iPhone as 'the most expensive phone in the world.'

The new version also shows Apple is switching suppliers.

Apple chose a Hynix Flash memory chip instead of Samsung, as in previous iPhones.
It may be a reflection of the worsening atmosphere between the two companies.

Samsung's phones sold more than iPhone for the first time last quarter, and the companies are involved in a bitter legal dispute spanning several continents relating to the patents behind iPhone and Android devices.
The report, from iSuppli, revealed the cost of components inside a 16Gb iPhone 4S.

The 4S is more expensive to make than the previous iPhone 4.

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Posted by masseur
Apple with 70% margins for each iPhone 4S sold