No Metal Mac – iPhone Cuts Metal to Save Costs

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This blog entry comes from guest editor, Jason Busch of  SpendMatters

I recently purchased a new 3G Apple iPhone but was dismayed to learn upon unpacking the oh-so-cool chi-chi box that the venerable tech giant ” now as large as Google from a market cap standpoint ” had replaced the metal casing with a black plastic one. But all is not lost for you stainless stalwarts. They’re still a few metal highlights on the new iPhone around the edges. And plus, you can even follow this; to effect a brushed chrome finish if you’re so inclined. But what I’m most curious about is the amount Apple is saving from moving to plastic. Let’s assume that Apple reaches its goal of selling 10 million units in 2008. On a per unit basis, there’s probably both material and assembly cost savings from switching to plastic. These probably run in the low single digits per unit. But even at $1 per phone, that’s $10 million to fund the Steve Jobs black turtleneck option fund. But still, even small savings can add up. Consider this blog which references the new iPhone costs “$173 USD to assemble and manufacture” which represents a 23 percent cost reduction from “its predecessor, which cost $226 USD to make.”

Jason Busch

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