Manufacturing cost of iPhone 7

IHS published a "bill of materials (BOM) for an iPhone 7 equipped with 32 gigabytes (GB) of NAND flash memory carries $219.80 in bill of materials costs". See more in the article below.

Apple A10 Fusion APL1W24 SoC + Samsung 3 GB LPDDR4 RAM (from https://www.ifixit.com/Teardown/iPhone+7+Plus+Teardown/67384)

Some of the high cost chips used in the iPhone will go down in price; for example the System-on-Chip (SOC) at a cost of $26.90 (made by TSMC) and the NAND memory chips (made by Hynix) and SDRAM (made by Samsung) at a combined cost of $16.40. The price of the iPhone 7 will not go down.

Ron

Insightful, timely, and accurate semiconductor consulting.

Semiconductor information and news at - http://www.maltiel-consulting.com/

The iPhone 7 costs Apple more than you think

LONDON--(BUSINESS WIRE)--The bill of materials (BOM) for an iPhone 7 equipped with 32 gigabytes (GB) of NAND flash memory carries $219.80 in bill of materials costs, according to a preliminary estimate from IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.

“Total BOM costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple’s main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit. “All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.”After $5 in basic manufacturing costs are added, Apple’s total cost to manufacture the iPhone 7 rises to $224.80. The unsubsidized price for a 32GB iPhone 7 is $649. IHS Markit has not yet performed a teardown analysis on the larger iPhone 7 Plus. This preliminary estimated total is $36.89 higher than the final analysis of the iPhone 6S published by IHS in December 2015.

Apple iPhone 7 32GB (A1778)
						Cost Summary
						Direct Material Costs		$	219.80
						(Component Costs)
						Conversion Costs		$	5.00
						(Assembly / Insertion / Test Costs)
						Total Cost		$	224.80
						(Direct materials and manufacturing)
Itemized Components		Manufacturer Name		Manufacturer Part Number		Description		Total Cost
Apps Processor
System-on-Chip		TSMC (Apple)		APLW24		Apple A10, Quad-Core 64-Bit ARM Based CPU, Hexa-Core GPU, 16nm FinFET		$	26.90
Baseband / RF / PA								$	33.90
Baseband		INTEL CORP		PMB9943		Baseband Processor, Multi-Mode
RF Transceiver		INTEL CORP		PMB5750		RF Transceiver, Multi-Mode (Qty:2)
RF Front End
Antenna Switch Module		TDK CORP		D5313		Antenna Switch Module, w/ Filters
Antenna Switch Module		TDK CORP		D5325		Antenna Switch Module, w/ Filters
Envelope Tracking		QORVO INC		81003M		Envelope Tracking IC
FEM		BROADCOM LTD (AVAGO)		DFI620		FEM
FEM		SKYWORKS		SKY13702-20		FEM
FEM		SKYWORKS		SKY13703-21		FEM
PAM		BROADCOM LTD (AVAGO)		AFEM-8050		PAM
PAM		BROADCOM LTD (AVAGO)		AFEM-8060		PAM
PAM		QORVO INC		RF6110		PAM
PAM		SKYWORKS		SKY77359		PAM
Battery
		HUIZHOU DESAY				Li-Polymer, 3.8V, 1960mAh		$	2.50
BT / GNSS / WLAN								$	8.00
BT / WLAN		UNIVERSAL SCIENTIFIC INDUSTRIAL		S39S00201		BT / WLAN Module
GNSS		BROADCOM LTD		BCM47734IUBG		GNSS Receiver
Front End						BT / WLAN & GNSS Front End
Cameras								$	19.90
Front FaceTime						7MP BSI w/ Fixed Lens
Rear						12MP BSI, w/ AutoFocus, & Optical Image Stabilization
Display								$	43.00
Display / Touchscreen Module						4.7" 1334x750 LTPS IPS LCD, w/ In-Cell Touch
Electromechanicals								$	16.70
Taptic Engine						Taptic Engine
Other Electro-Mechanicals						Antennas, Connectors, Microphones, PCBs, Speakers, etc.
Glue Logic								$	1.30
		LATTICE SEMICONDUCTOR		ICE5LP4K-SWG36I		FPGA - iCE40 Ultra, 40nm
Mechanicals								$	18.20
Enclosure						Enclosure, Main, Bottom - Machined Aluminum
Other Mechanicals						Hardware, Labels, Insulators, Shielding, vents, etc.
Memory								$	16.40
NAND		SK HYNIX		H23QEG8VG2ACS-BC		32GB NAND
SDRAM		SAMSUNG SEMICONDUCTOR		K3RG1G10CM-YGCH		2GB LPDDR4 PoP
Power Management								$	7.20
PMIC - Main		DIALOG SEMICONDUCTOR		338S00225		PMIC - Main
PMIC - RF		INTEL		PMB6826		PMIC - RF
Others						Other PMICs, Transistors, Diodes, etc.
User Interface								$	14.00
Audio codec		CIRRUS LOGIC		CS42L71		Audio Codec
Audio Amplifier		CIRRUS LOGIC		338S00220		Audio Amplifier (Qty:3)
NFC		NXP		PN67V		NFC Controller
Others						Interface Ics, discretes, passives, etc.
Sensors
Barometer		BOSCH SENSORTEC GMBH				Barometric Pressure Sensor
e-compass		ALPS				Electronic Compass
Other Sensors						Accelerometer, Gyroscope, Touch ID Fingerprint sensor, ALS/Proximity sensor, etc.
Box Contents								$	11.80
Lightning Cable						USB to Lightning
Lightning to 3.5mm Audio Adapter						Audio Adapter, Lightning to 3.5mm Jack
Headset w/ Lightning Connector						Headset, Stereo, w/ Lightning Connector
Charger

Same shape. No jack.

While the overall shape and physical design of the iPhone 7 is similar to the iPhone 6S that preceded it, the new display has wider color gamut, including DCI-P3 as well as traditional sRGB, which improves the rendering of photos and videos. The device’s haptic engine, which provides the “click” feel for users, has also been improved for longer-duty cycles and better dynamic response. The home button is now static and mimics the MacBook in terms of a solid-state button design.

Apple has also eliminated the 3.5 millimeter headphone jack, allowing a larger battery and haptic motor. “Where there was an audio jack in the previous design, Apple replaced it with a symmetrical grill -- not for speakers, but for the waterproof microphone, leaving more room for the larger battery and Taptic Engine,” Rassweiler said.

Increased base-model storage

Apple has increased the iPhone 7’s storage density. For the first time, the base model starts at 32 gigabytes (GB) – which is only the second time Apple has upgraded the base storage in the iPhone. From a cost perspective, the shift from 16GB/64GB/128GB iPhones to 32GB/128GB/256GB is a big jump. “Despite significant cost erosion in NAND flash over the last year, this increase in the overall memory cost definitely puts pressure on the bill of materials costs -- and therefore margins -- from Apple’s perspective,” Rassweiler said.

Intel returns

The Intel design win, and six years of absence that Intel had from the iPhone, is important to note. Even so, Intel still shares the processor business with Qualcomm. “Whereas Apple strives to have ‘one iPhone model for all carriers and markets,’ there are a number of different hardware permutations supporting various countries and carriers,” Rassweiler said. “Apple will likely look for ways to simplify the design moving forward, which means one supplier – whether Intel or Qualcomm – will likely dominate, as part of supplier and SKU streamlining.”

According to Wayne Lam, principal analyst of smartphone electronics, IHS Markit, “Largely left behind in the 4G LTE market, Intel has finally worked itself back into the iPhone, which is a huge win, but not one that is going to be financially significant in the near term for Intel.”

RF paths

Apple has also eliminated segmented antenna bands, which means the company is pushing all radio-frequency (RF) paths to the very ends of the phone – both on the top and bottom. The aluminum uni-body construction and design forces all RF paths into those two locations. Whereas other smartphones use a glass back and RF components with antennas mounted on the ample back spaces, Apple is restricted to just two physical antennas. “This design limitation may force Apple to go back to an all-glass design again so that they can fit in 4x4MIMO LTE antennas and more features like wireless charging in the next iPhone iteration,” Lam said.

Modem moved

The baseband thin modem has been moved next to the A10 processor. Prior to the iPhone 7, the thin modem was always on the other side of the SIM card receptacle. “This is a subtle change but likely shows us where Apple wants to take this,” Lam said, “eventually putting the thin modem right on the apps processor package or even integrating it into the A-series processor.”

Officially water resistant

iPhone 7 is now officially rated as water resistant. “We also saw evidence of this water proofing design evolution in the earlier iPhone 6S, which included additional gasketing around critical connectors, as well as the use of WiFi antenna at the end of the primary speaker box,”Lam said. “Doing so pushes the antennas near the only other opening, for better reception and transmission.”

Jet-black polished case

Jet black polish is a new option on 128GB and 256GB models. “This is a new feature that produces a whole new look for the iPhone,” Lam said. “It is a lower yielding, time-intensive manufacturing step that adds cost, as well as considerable value, pushing the retail price higher for those requesting this option.”

Antenna speaker design

The antenna speaker design on the iPhone 7 came from the WiFi antenna packed into the speakers of Apple’s MacBook. “Apple likes to reuse these unique designs throughout their product lines,” Lam said. In a first for the iPhone series, the headset speaker now doubles as a stereo speaker.

Upgraded camera

While not as groundbreaking as the two optical paths in the iPhone 7 Plus, the iPhone 7 camera has now been upgraded to optical image stabilization (OIS), for better low light performance.

Improved battery life

The battery has been increased to 1960mAhr capacity from 1715mAh in the previous iPhone 6s. This change is consistent with Apple’s claims of improved battery life.

IHS Markit (www.ihsmarkit.com)

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and expertise to forge solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.

IHS Markit is a registered trademark of IHS Markit Ltd. All other company and product names may be trademarks of their respective owners © 2016 IHS Markit Ltd. All rights reserved.

Contacts

IHS Markit
Lee Graham, +1 303-397-2468

iPhone 6+ Secret Sauce

Apple’s customers upgrade cycle to iPhone 6 plus will help many semiconductor companies. The key suppliers are in the article below -

"the biggest winders are Avago, SkyWorks and NXP, who have seen component content for the iPhone 6 increase by 30 to 90 percent compared to the iPhone 5S. Qualcomm also gains more carrier aggregation, and the NAND boost to 128GB "

The 64 bit A8 processor is the secret sauce giving the iPhone its battery and operation performance.

Ron
Insightful, timely, and accurate semiconductor consulting.
Semiconductor information and news at - http://www.maltiel-consulting.com/

What's inside the iPhone 6 Plus?

Summary: A teardown of the new iPhone 6 Plus reveals hidden innovations that Apple didn’t tell us about.

By Adrian Kingsley-Hughes for Hardware 2.0 | September 19, 2014 -- 12:37 GMT (05:37 PDT)

(Image: iFixit)

Today's the day that the iPhone 6 finally falls into the sweaty paws of the masses. And one of the first iPhone 6 Pluses off the production line has fallen into the hands of the iFixit team and is immortalized in their latest teardown.

Here is a listing of the chips that have so far been identified:Inside the iPhone 6 Plus are an array of chips from a number of vendors including Qualcomm, Broadcom, NXP, Texas Instruments, and Avago. And taking pride of place in the middle of all that is Apple's own A8 processor, and that's teamed with 1GB of Elpida LPDDR3 RAM.

• Apple A8 APL1011 SoC + Elpida 1 GB LPDDR3 RAM (as denoted by the markings EDF8164A3PM-GD-F)
• NXP LPC18B1UK ARM Cortex-M3 Microcontrollers (which is the proper name for the M8 motion coprocessor)
• Qualcomm MDM9625M LTE Modem
• Skyworks 77802-23 Low Band LTE PAD
• Avago A8020 High Band PAD
• Avago A8010 Ultra High Band PA + FBARs
• TriQuint TQF6410 3G EDGE power amplifier module
• InvenSense MP67B 6-axis gyroscope and accelerometer combo
• Qualcomm QFE1000 Envelope Tracking IC
• RF Micro Devices RF5159 Antenna Switch Module
• SkyWorks 77356-8 Mid Band PAD
• SK Hynix H2JTDG8UD1BMS 128 Gb (16 GB) NAND Flash
• Murata 339S0228 Wi-Fi Module
• Apple/Dialog 338S1251-AZ Power Management IC
• Broadcom BCM5976 Touchscreen Controller
• NXP 65V10 NFC module (likely contains an NXP PN544 NFC controller inside)
• Qualcomm WTR1625L RF Transceiver
• Qualcomm WFR1620 receive-only companion chip
• Qualcomm PM8019 power management IC
• Texas Instruments 343S0694 touch transmitter
• AMS AS3923 boosted NFC tag front end
• Cirrus Logic 338S1201 audio codec

According to Sterne Agee analysts Vijay Rakesh and Troy Cowdrey the biggest winders are Avago, SkyWorks and NXP, who have seen component content for the iPhone 6 increase by 30 to 90 percent compared to the iPhone 5S. Qualcomm also gains more carrier aggregation, and the NAND boost to 128GB is also good for memory suppliers Micron and Sandisk.

The battery is a monster 43 gram unit and is rated at 3.82 V and 11.1 Wh of energy, for a total of 2915 mAh, which is nearly double the capacity of the battery found inside the iPhone 5S, and slightly bigger than the battery inside the Galaxy S5. The new battery gives the iPhone 6 Plus up to 24 hours on 3G, and 384 hours of standby time, which is a huge increase over both the iPhone 5S and the iPhone 6.

(Image: iFixit)

There are also many more internal improvements that apple has made to the iPhone 6 Plus. The new iSight camera features phase-detection autofocus – common on DSLRs but relatively new to smartphones – and optical stabilization.

However, when it comes to the protruding "camera nubbin," even iFixit are worried about the impact and impact might have on it (pun fully intended).

"The lens cover may be made out of sapphire glass, but we're still concerned about what this design choice might mean for durability," iFixit writes in their teardown piece.

(Image: iFixit)

Also new is the vibrator assembly that replaces the old style "motor with an off-set weight" with an electromagnet that vibrates a weight. It's a pretty cool and novel approach to vibrations. I suspect the new design is not only more robust, but allows for a greater range of vibrations.

The power and volume buttons on the new iPhone now feature a rubber gasket that should help with keeping dirt, dust and moisture from making its way inside the handset.

iFixit awarded the iPhone 6 Plus a repairability score of 7 out of 10 (where 10 is the easiest to repair). Praised was the ease of access and how simple screen and battery replacements, and the fact that the fingerprint sensor cable has been rerouted and lengthened (the previous design made tearing the cable easy when opening the handset). However, they criticized the use of proprietary Pentalobe screws and the fact that Apple doesn't share repair information with third-parties.

Galaxy S5 BOM $256, iPhone $191, $173

IHS released a teardown of Samsung’s Galaxy S5, the estimated bill of materials of $256 BOM keeps going up from previous cell phone generations. See more in the article below;

"IHS found that the Galaxy S3 had a BOM of $205, while the S4 ended up at $233 (LTE version with Qualcomm 600 SoC). On top of that, a Galaxy S series phone costs upwards of $8 to assemble."

While "the iPhone 5S had a BOM of $191 when it launched last September, while the iPhone 5C had $173 worth of components inside its unapologetically plastic body."

Like in Apple's phone DRAM and NAND are a high cost items and as semiconductor manufacturing advance along its learning curve it will increase Samsung margin.

1. 1080p display is the most expensive component, costing about $65
2. DRAM and NAND memory is around $33
3. Unclear how much the Snapdragon 801 SoC costs, should be about $30

See more at iPhone Teardown Updated,  iPhone 5s Teardown, and some more about the processor iPhone A6 Teardown Update

Ron

Insightful, timely, and accurate semiconductor consulting.
Semiconductor information and news at - http://www.maltiel-consulting.com/

$256, priciest Galaxy S to date

Research firm IHS got hold of Samsung’s new flagship smartphone and took it apart to the last bolt to figure out how much it actually costs to build. According to the teardown, the Galaxy S5 has a bill of material (BOM) of $256. 

Of course, this is not the full cost of the device, as it does not cover logistics, R&D, marketing and a range of other expenses that Samsung has to cover before the device makes it to retail.

Galaxy S5 BOM higher than usual

The $256 figure sounds a tad too high. Most flagship phones tend to have a BOM of about $200 or less. Most iPhones usually end up south of $200. For example, the iPhone 5S had a BOM of $191 when it launched last September, while the iPhone 5C had $173 worth of components inside its unapologetically plastic body. 

The Galaxy S5 retails for $699. Samsung does not have as much room to jack up margins as Apple does on the iPhone 5S, but it still has quite a bit more than many manufacturers. What’s more, Samsung’s BOM keeps going up. IHS found that the Galaxy S3 had a BOM of $205, while the S4 ended up at $233 (LTE version with Qualcomm 600 SoC). On top of that, a Galaxy S series phone costs upwards of $8 to assemble.

High-end smartphones are pricey, but at least it’s nice to see that Samsung’s consumers get a bit more value for money with each new generation.

Display remains the priciest component

Unsurprisingly Samsung’s 5-inch 1080p display is the most expensive component in the Galaxy S5. IHS puts its cost at $65. The cost of DRAM and NAND memory is around $33, but it’s unclear how much the Snapdragon 801 SoC costs. IHS puts the price of the Snapdragon 600 used in the S4 at $20, while the big Exynos 5 was estimated to cost $30. The Snapdragon 801 is probably closer to the Exynos in terms of overall cost.

“Inside we see mostly a lot of recycled components that we’ve seen before. There’s really nothing special inside where Samsung is pushing the envelope,” IHS analyst Andrew Rassweiler toldRe/code. “There’s no breakthroughs, there’s nothing earth-shattering. It’s really just a continuation of what has come before.”

However, although there are no breakthroughs, the Galaxy S5 features a few new sensors, including a $4 fingerprint sensor and a biosensor from Maxium, with an estimated cost of $1.45. In addition to the new components which were not used in previous Galaxy S phones, the S5 also features a somewhat sturdier body, which also happens to be waterproof. This probably added a few more bucks to the BOM. 

Xbox, PlayStation 4 $332 Manufacturing Cost

TechInsights Teardown (see below) shows that both vendors used many similar parts to optimize their investment in the next generation of gaming consoles.

Based on iFixit tear down I believe that the tear down has a minor error that would add about $3 to Xbox cost of manufacturing due to the 8GB EMMC NAND flash being used instead of:  

"Xbox One also has 4GB eMMC NAND flash, making the non-volatile category US$3 higher for Xbox One"

Based on iFixit disassembles the Xbox One and finds NAND

"One interesting component is an 8GB chunk of eMMC NAND flash memory, the purpose of which Microsoft discussed last month with Eurogamer. In the words of Microsoft Technical Fellow Andrew Goossen:

We use it as a cache system-side to improve system response and again not disturb system performance on the titles running underneath. So what it does is that it makes our boot times faster when you're not coming out of the sleep mode—if you're doing the cold boot. It caches the operating system on there. It also caches system data on there while you're actually running the titles and when you have the snap applications running concurrently. It's so that we're not going and hitting the hard disk at the same time that the title is. All the game data is on the HDD. We wanted to be moving that head around and not worrying about the system coming in and monkeying with the head at an inopportune time.”

 Ron

Insightful, timely, and accurate semiconductor consulting.

Semiconductor information and news at - http://www.maltiel-consulting.com/

Teardown.com compares PlayStation 4 vs. Xbox One

25 November, 2013 TechInsights

 

TechInsights has performed a Quick Turn Teardown of the Sony PlayStation 4 and the Microsoft Xbox One.

TechInsights Teardown shows that both vendors used many similar parts to optimise their investment in the next generation of gaming consoles.

While AMD came out as a big winner in the APU (integrated CPU and GPU) there are choice design differences around the both the processor design and the use of memory in each device.

The TechInsights bill of materials (BOM) for the Microsoft Xbox One amounts to US$331.00. Based on this – and when the estimated costs for the peripherals are included – TechInsights believes Microsoft will have a gross profit of approximately US$100.00 per console sold. This is far better than the US$43.00 Sony will make per complete unit.

Says Al Cowsky, Costing Director, TechInsights: “At the console level, the Xbox One is US$10 less expensive than the PS4. This is primarily due to a US$23 memory premium on the PS4, but it is offset by an US$11 cost premium on the Xbox One processor.

"The Xbox One also has 4GB eMMC NAND flash, making the non-volatile category US$3 higher for Xbox One, while the housings/mechanicals of the Xbox One add another US$4 premium over the PS4.

"The Xbox One also comes with a Kinect vision system in-box with an estimated cost of US$39. This is more than made up for by the US$100 list price premium. Likewise, PS4 has an optional vision system accessory available for a list price of US$60 (unit not costed at this time)”

iPhone 5s $199 Manufacturing Cost (BOM)

The article below discusses "Apple’s Inc.’s new flagship product—the iPhone 5s—features some cutting-edge components that represent pioneering achievements for the smartphone market while maintaining a nearly identical cost compared to the iPhone 5.

The low-end version of the iPhone 5s with 16 gigabytes (GB) of NAND flash memory has a bill of materials (BOM) of $191"

" iPhone 5s to LPDDR3, ... Apple probably used this high-speed, cutting-edge memory—as opposed to the LPDDR2 employed in the original iPhone 5 and 5c—to support the fast processing speeds of the A7.
Such performance comes at a price. The 1 GB of LPDDR3 costs $11.00, up from $9.50 for the same quantity of LPDDR2 in the 5c."

Price of DRAM and NAND memory will have a strong impact on Apple profit margin in the future. Currently on the low end model memory cost is about 10% of iPhone 5s cost, while it is 20% of 64GB model.

Looking at NAND memory price drop in the past, for example, the 16Gbytes of NAND flash in the iPhone 5 is estimated to cost $9.40, down dramatically from $19.20, based on pricing in October 2011. Any  DRAM or NAND price drop will help Apple bottom line


Ron
Insightful, timely, and accurate semiconductor consulting.
Semiconductor information and news at - http://www.maltiel-consulting.com/

Groundbreaking iPhone 5s Carries $199 BOM and Manufacturing Cost, IHS Teardown Reveals 

September 25, 2013 

ANDREW RASSWEILER

Apple’s Inc.’s new flagship product—the iPhone 5s—features some cutting-edge components that represent pioneering achievements for the smartphone market while maintaining a nearly identical cost compared to the iPhone 5.
The low-end version of the iPhone 5s with 16 gigabytes (GB) of NAND flash memory has a bill of materials (BOM) of $191, according to the preliminary results of a physical dissection of the device conducted by the Teardown Analysis Service at IHS Inc. (NYSE: IHS), a leading global source of critical information and insight.  When the $8 manufacturing expense is added in, the cost rises to $199. The compares to a $197 total cost for the original iPhone 5, based on the completed IHS teardown analysis from one year ago.
“The iPhone 5s features a 64-bit apps processor, low-power Double Data Rate 3 (LPDDR3) DRAM, and a novel fingerprint sensor—features that have never before been seen in a smartphone,” said Andrew Rassweiler, senior director, cost benchmarking services for IHS. “In addition, it is very interesting to see that Apple continues to collaborate closely with suppliers to develop unique radio frequency (RF) solutions that give Apple a competitive edge.”
The table below presents the preliminary BOM and manufacturing cost based on a physical dissection of the iPhone 5s conducted by the IHS Teardown Analysis Service. Note that the teardown assessment is preliminary in nature, accounts only for hardware and manufacturing costs and does not include other expenses such as software, licensing, royalties or other expenditures. 

iPhone turns 64Although other smartphones have included 64-bit graphics processors, the 5s is the first model with a 64-bit applications processor, an innovation that has major implications for the iPhone and for Apple’s other product lines.
“The move to the 64-bit apps processor is largely driven by the need for greater computational power to ensure that the smartphone’s fingerprint sensor works quickly and seamlessly,” said Wayne Lam, senior analyst for wireless communications at IHS. “The processor also boosts the performance of the iPhone 5s’s camera, allowing 120 frame-per-second (FPS) video and 10 FPS photo capture. This design change will likely set the stage for 64-bit processors to be used in upcoming Apple products, including new models of the iPad, the Apple TV and even MacBook Air PCs.”
The 64-bit processor is part of the Apple-designed A7 apps processor, based on a core from ARM Holdings plc. The new 64-bit processor core is called “Cyclone,” as opposed to the 32-bit version used in the iPhone 5 and 5c, known as “Swift.”
Despite the well-publicized feud between the companies, Samsung is the manufacturer of Apple’s A7. This likely is because Samsung has a license to ARM's 64-bit core.
The A7 used in the iPhone 5s costs $19—significantly higher than the A6 used in the original iPhone 5 and 5c, which currently carries a cost of $13.
Precious memories In parallel with the upgrade to 64-bit computing, Apple has updated the memory of iPhone 5s to LPDDR3, marking the first time that the IHS Teardown Analysis Service has identified this advanced type of DRAM in an electronic product. Apple probably used this high-speed, cutting-edge memory—as opposed to the LPDDR2 employed in the original iPhone 5 and 5c—to support the fast processing speeds of the A7.
Such performance comes at a price. The 1 GB of LPDDR3 costs $11.00, up from $9.50 for the same quantity of LPDDR2 in the 5c.
Printing moneyThe addition of the fingerprint scanner also represents an increased hardware cost for the 5s. The user-interface segment of the 5s, which includes the fingerprint scanner, costs $15. This compares to just $8 for the user interface for the 5c, which has no fingerprint scanner.
Battle of the bandsAnother major difference between the iPhone 5s and the original iPhone 5 lies in the RF transceiver, which has been updated to support more 4G Long Term Evolution (LTE) bands. Like the iPhone 5c, the 5s uses Qualcomm’s WTR1605L RF Transceiver, which supports up to seven simultaneous LTE connections during operations. The original iPhone 5 utilizes the older RTR8600L RF transceiver, also from Qualcomm, which supported only five active LTE bands.
Design stasisOne of the biggest-ticket items in the iPhone 5s gets no change: the display and touch-screen subsystem. Maintaining the same specification and the same suppliers for the panels as the iPhone 5 has helped Apple hold the line on its hardware costs for the 5s. Japan Display Inc., LG Display and Sharp have been the main display suppliers for the iPhone 5 for more than a year, allowing Apple to provide them the opportunity to enhance their manufacturing yields and efficiencies. NAND flash has also not made any significant advances with the 5s, and the amount of the memory content in the phone remains the same.
The table below presents major component suppliers for the iPhone 5s.

 

Higher prices for higher-end phonesThe combined BOM and manufacturing cost for the midrange iPhone 5s with 32 GB of NAND flash is estimated at $208. The 64-GB model’s cost totals $218.