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Applevine: Price Changes for Touch? Inside the 3G iPhone and its Profit Margin?

inside iphoneOne of the first things that happens when a product like the iPhone 3G hits the market is someone breaks it.  For curiosity, for insight, to see what’s inside, or simply because they can – someone will crack it open and chronicle all the bits and pieces; who made what and where did they do it.

It won’t be until July 11th that such an official breakdown can happen (and it’ll probably be a couple days after before such a story is published) but that delivery day isn’t stopping insiders from “leaking” news about who won the the iPhone part-age lottery nor is it stopping the press from speculating.

As of Thursday, the Commercial Times, a Chinese language newspaper is claiming they’ve got the scoop on what’s in iPhone 3g.  Per their reports, and translations from Digitimes, the following companies will be inside come July 11:

GPS Chips Broadcom  
Camera Lens Largan Precision and Genius Electronics  
Handset Chips Infineon  
Foundry UMC  
Case Foxconn  
Crystal TXC, NTK  
PCP Nanya PCB, Unimicron  
Assembly Foxconn  
IC Package Siliconware Precision Industries  
Camera Altus Technology, Primax  
Panel Sharp  


The Commercial Times has reported various leaks for months but u ntil the phone is officially broken, it’s all speculation.  Still, with much overlap between iPhone 1.0 and iPhone 3G, chances are the list is predominantly accurate.

iPhone Price Chatter: Also of note on the iPhone watch, a report from Oppenheimer analyst Yaer Reiner is saying $325 per phone is the price AT&T will pay Apple. (Phones activated through Apple stores could generate another $100 per phone). The scale of these subsidies is well ahead of typical smart phone practices. Usually, phone carriers pay in the ballpark of $200.

Related reports citing teardown specialist Portelligent are projecting Apple’s hardware cost for new model could be as low as $100. While that price doesn’t factor in marketing, software development or other expenses, if accurate, it would mean, on a margin level, the iPhone 3G will be one of Apple’s most profitable products.


applevine rumorsiPod Touch Upgrades or Pricing Changes Coming?

With the iPhone 3G on the way, astute observers are starting to wonder if changes will soon follow for the flagship iPod touch.   It is, after all, substantially similar to the iPhone.  It’s also soon to lose much of its pricing appeal once the new affordably priced phone hits store shelves in July.

Why (cell phone subscription costs aside) would you buy a $299 8GB iPod Touch if you can buy an iPhone that has the same feature set and more for $199. 

Will the Touch get a facelift?  Bigger hard drives (it’s currently available in 8GB, 16GB and the pricy ($499) 32GB models)?  Or will Apple address the pricing issue and the likelihood of iPhone caused cannibalization with a price cut?

These are all interesting questions and all forming the seeds of new rumor and speculation.    Adding to some of the chatter too, pipeline watchers have recently reported some slight shipping delays for the more affordably priced Touch models.

Given the device is being bundled and given to students as part of a package incentive for buying Macs, it’s possible any inventory lags are purely coincidental.  On the other hand, shortages and promotional pricing can often indicate a pre-update house cleaning. 

Apple’s earnings come in mid July.  If news it coming, it could come then, or in time for the back to school sales around late August, early September.  


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