How much of an iPhone does Apple make ?


Some facts about the making of Apple iPhone and how does Samsung (its rival) come into the picture.

Does Apple make the iPhone? NO.
Does Apple manufacture the components of iPhone ? NO.
Does Apple atleast assemble the components to make iPhone ? NO.

Shocked ? Yes. All these are the unbelievable facts behind the making of an iPhone. Read on.


The Economist magazine has prepared the following chart based on the data from iSuppli, a market research firm.

Does Samsung manufacture parts of iPhone ? YES

Ironically, it is Samsung (the rival of Apple in smartphone and tablet segment), which manufactures vital parts of the iPhone like : flash memory ; music & operating software; the DRAM (which is the working memory) ; the applications processor.

So, Samsung accounts for about 26% of all the components cost in an iPhone !

Why does Samsung act as a supplier to its rival ?

Well, this is part of Samsung’s business model. When it is the supplier of components to other companies, the large scale production gives it cost advantage to produce components for its own products.


Observe that Apple pockets a major part of the cost of iPhone and the amount it spends on R&D , software development for iPhone is not known.

Do note that though the share of Apple in number of handsets is lower (upto half of 2011), its share of profits is the highest.

Coming to the latter part of the above graph, Apple has become the single largest supplier of smartphones by the 2nd half of 2011 and Samsung is in the second place. So, now this justifies why Samsung still supplies components to Apple.

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[via TheEconomist]

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