Actual Production cost of iPhone 5 Costs only Rs 11,818 says Barclays

How much do you think that iPhone 5 will cost? If you are going to say Rs 45,500 or above, then you are probably wrong. Believe it or not, the Apple iPhone 5, which costs Rs 45,500 in India, is actually worth Rs 11,818 rs in indian rate. According to the research conducted by the British banking and financial services company Barclays, it is estimated that total material cost for an iPhone 5 excluding the value of warranty, manufacturing costs, and other logistics expenses costs is only Rs 11,818 that is ($215).

“We estimate that NAND Flash accounts for about 10% of the total iPhone cost, wireless components account about 16% and the display about 20% of the total.” estimated Barclays. Barclays further added that “the material cost for iPhone 5 might have declined slightly in the month of December, last year”. However this decrease is independent of the logistics cost that has improved over that period.

During the period from September, Apple Inc’s revenue includes 48% of total iPhone sales which is also the 58% of Apple Inc’s profit during that quarter.

“We estimate the iPhone and related revenue accounted for about 51% of Apple’s revenue in FY12 and will grow to about 54% of revenue in FY13.” – said Barclays. They also predict that the cost of iPhone 5 will improve in the coming months as Apple Inc. drives component deflation with its significant buying power.

It is hard to tell whether the estimation of Barclays about the cost of iPhone5 is true. If it’s true, one can imagine the real cost of the Smartphones made by other manufacturers.

Credits : News.Entecity.com