subscribe: Posts | Comments

Iphone labor cost is $6.54 dollars

Foxconn, a company responsible for making the iPhone based in China is embroiled in a controversy over a wave of suicides.

Labor costs related to Chinese iPhone 4G manufacturing is $6.54 dollars (4.6 euros) per unit, which means it’s 1.1% of its selling price, according to market research firm iSuppli.

This number is striking specially in conjunction with the report on the working conditions at Foxconn, a company responsible for making the iPhone and based in China, recently mired in controversy due to a wave of employee suicides. In contrast, the report highlights that Apple’s iPhone profit margins are around 60%.

Last June, iSuppli also calculated the total production cost of the device at $188 (152.4 euros). The analysis was based on the 16 GB version of iPhone 4, which could be purchased for $199 (161.3 euros) in the United States, which had an added contract plan with AT&T. Some of the prices of the components were, for example, the gyroscopic chip at $ 2.6 (2.1 euros), the A4 chip manufactured by Samsung, $ 10.75 (8.7 euros). The most expensive part was the device display, manufactured by LG Display at a cost of $28.5 dollars (23 euros).