Here's Why the New iPhone is Going to Be More Expensive (AAPL)
Tweet
Share
E-mailGet Alerts AAPL Hot Sheet
Join SI Premium – FREE
When talking about Apple (Nasdaq: AAPL) lately, it's hard not to work 4G LTE access into the conversation. Rumor is that the new iPhone 5 will be able to give users high-speed capability to access the web through 4G compatibility.
But, the addition will come at a cost to Apple. According to a recent tear down of the HTC Thunderbolt, Verizon's (NYSE: VZ) first 4G mobile device, the addition of 4G capability will add about $39.75 to the cost of Apple's new device.
Powered by QUALCOMM (Nasdaq: QCOM), IHS (NYSE: IHS) notes that the most expensive component to 4G is the 4G Baseband, coming in at $29 per. All the other components in the system add just about $10 more to the price tag.
Two things to consider moving forward: 1) Increased costs will surely eat into Apple's margins based on sheer volume the iPhone is likely to do, and 2) the price of these components is probably lower than what was implemented in the Thunderbolt, considering the time between releases of the two.
Of course, this speculation surrounds a rumor that the iPhone will be 4G ready. Cupertino, CA's gem company may want to wait until the technology is more widespread before committing millions, if not billions. on further development.
Apple is trading 1.4 percent lower on the session.
But, the addition will come at a cost to Apple. According to a recent tear down of the HTC Thunderbolt, Verizon's (NYSE: VZ) first 4G mobile device, the addition of 4G capability will add about $39.75 to the cost of Apple's new device.
Powered by QUALCOMM (Nasdaq: QCOM), IHS (NYSE: IHS) notes that the most expensive component to 4G is the 4G Baseband, coming in at $29 per. All the other components in the system add just about $10 more to the price tag.
Two things to consider moving forward: 1) Increased costs will surely eat into Apple's margins based on sheer volume the iPhone is likely to do, and 2) the price of these components is probably lower than what was implemented in the Thunderbolt, considering the time between releases of the two.
Of course, this speculation surrounds a rumor that the iPhone will be 4G ready. Cupertino, CA's gem company may want to wait until the technology is more widespread before committing millions, if not billions. on further development.
Apple is trading 1.4 percent lower on the session.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Verizon prepares network for potential tropical storm; Customer relief through August 31
- UBS flags this name, sees "significant potential for stock outperformance"
- Buy this stock to gain "growing AI/HPC exposure": Barclays
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
