What smartphones really cost

Smartphones may be pretty uniform in price at the store, but what they cost to manufacture -- and their price without a two-year contract -- varies wildly.

1 of 6
BACKNEXT
Apple iPhone 4 (16 GB)
Component cost: $187.51
Price without contract: $599
Price with contract: $199
Lowest available price: $197 (Wal-Mart)

Unlike other smartphone manufacturers, Apple generally doesn't allow its devices to be sold for any less than in its stores, so $199 is almost certainly what you're going to pay for a new iPhone 4 with a two-year contract. Buying it at Wal-Mart will knock that down a buck or two.

With component costs of nearly $190, the iPhone 4 is the most expensive smartphone on the market to manufacture, according to research firm iSuppli. The largest single component of that cost is the iPhone's Retina Display, which costs an estimated $30 to make.

But the real wallet wallop comes if you break or lose your iPhone 4 and have to replace it before your contract is up. Buying one without AT&T's subsidy will set you back a jaw-dropping $600.


NEXT: Samsung Galaxy S - Vibrant
Last updated September 08 2010: 11:10 AM ET
Source: Component cost estimate from iSuppli
  • Find Homes for sale
    Real estate and homes for sale on Trulia

  • Property Type
  • Find a home in:
  • New York | Atlanta | Chicago | Los Angeles
  • Washington D.C | Houston | Philadelphia | More options
More Galleries
5 companies that make business 'beautiful' Profits are a necessity, says a new book by a French design team, but sustainability and simple pleasure matter, too. More
10 cars that got a bad rap The scrap heap is piled high with lousy cars. But a few famous flops deserve a little reconsideration. More
8 most business-friendly cities These metro areas rate highest for ease of starting a business, government support of entrepreneurs, and more, according to a recent Thumbtack survey of more than 8,000 small businesses. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2013 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2013 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2013. All rights reserved. Most stock quote data provided by BATS.