Apple's (AAPL) iPhone 5c: The New Profit Driver?

Whether consumers pick an iPhone 5c or 5s, Apple (Nasdaq: AAPL) ensured that both are profitable.

UBS today said that the iPhone 5s costs about $220 for materials, $20 for manufacturing, $96 for software/warranty/other items, for a total cost of $336 and gross profit of 45.5 percent. The profit goes up with the addition of more memory.

For the iPhone 5c, UBS sees total cost at $270 and gross margin at 48.3 percent for a 15-gigabyte version.

Last week, IHS broke down the cost of the device, saying a 16-GB iPhone 5c carries a bill of materials (BOM) of $166. The cost rises to $173 when manufacturing expense is added in. The 32-GB model has a combined cost of $183.

Shares of Apple are down 1.2 percent.

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