iPhone 5 Estimated to Cost Only $168 in Parts

Apple has always been close-mouthed about the costs for their products but that never stops the various market analysts from trying to guess. Today we have another one of those guesses, this time from UBM Tech Insights.

This consulting firm watched the presentation, read the early reviews, and then put together their best guess for what it cost.  They of course have not put their hands on the device or looked inside, but right now they estimate the iPhone 5 to cost around $167.50.

Apple is selling it unlocked for $650, which is an impressive markup no matter how you slice it. And that’s not just one blogger’s opinion, the recent Samsung-Apple lawsuit in the US revealed that Apple makes a lot of money on each iPhone, which accounts for somewhere between half and 2/3rds of Apple’s profit margin.

via UBM Tech Insights