Did you know that 26% of the iPhone 4 is made by Samsung?
Shock and horror for Apple fanboys. It turns out that a whopping 26% of the gorgeous and magical iPhone 4 is actually manufactured by mobile handset competitor Samsung, based in Korea.
The highly-prized ‘brain’ of the iPhone 4 (that includes the RAM, memory chips and A4 chipset) is made entirely by Samsung and contributes to 26% of the phone’s total component cost. This isn’t a match made in heaven any longer though, as Apple and Samsung have been at each other’s legal throats recently, fighting about similarities between Samsung’s Galaxy Tab and Apple’s iPad. Which is probably a good indication that Apple has plans to part ways with the Korean tech company for future components, including the upcoming A6 chipset.
And the outsourcing doesn’t end there. The iPhone 4′s 3.5-inch ‘retina display’ is understood by industry insiders to be manufactured by another one of Apple’s mobile handset competitors, LG.
With all the outsourcing going on, and everyone wanting their piece of the profit pie, it’s hardly surprising that the iPhone comes at such a high price. According to the infographic below, the iPhone 4 costs around $178 to produce. Throw in the gazillion-dollar marketing budget, and a healthy 200-300% profit margin for Steve Jobs and the boys, and you’re looking at the price tag you see in the iStore.