Apple's Iphone 4 smartphone, for which it's charging at least $600 at retail, is built of parts that cost $187.51, according to market research firm Isuppli.(Isuppli's cost estimate doesn't include labour, shipping, advertising, software development or patent licensing).
The most expensive part of the Iphone 4 is the 3.5-inch LCD screen which costs $28.50.
Apple A4 processor is made by Samsung Electronics for $10.75 per chip.
Geneva-based STMicroelectronics supplied the gyroscope chip at an estimated cost of $2.60, as well as an accelerometer chip used in previous Iphone versions, which has an estimated cost of 65 cents.
Other component suppliers named by Isuppli include Skyworks, a wireless chipmaker and TriQuint Semiconductor.
Of course this means that Apple's gross margin on the hardware in Iphones is extremely high.Morever apple earns $200 million every month or 2.4 billion every year by just selling apps from appstore.
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