Just an interesting story I came across.
iSuppli, which is known for its gadget component costs analysis, released a breakdown of the parts that make up the iPhone 4S. The most basic 16GB model carries a bill of materials worth £118. This total is a long way from the sale price of £499.
Earlier this year, ABC's ‘Nightline’ show went into the Chinese factories of Foxconn, where most of the world's Apple products - iPads, iPhones and Mac computers - are manufactured. The investigation revealed that workers earn just £1.12 an hour, work long hours and live in dorms with fellow employees.
Asymco analyst Horace Dediu used the ‘Nightline’ report to estimate that Apple pays labour costs of between £7.86 and £18.56 for every iPhone it makes, which represents just 2-4% of the iPhone's sale price.
So if the materials cost roughly £118, and Dediu has calculated that an additional £58 is spent on manufacturing its smartphone, (a cost that includes the labour costs, transportation, storage and warranty expenses) we reach a total of about £176 to manufacture an iPhone that retails at £499. This represents a profit for Apple of £323 per iPhone.
From what I've heard, for an extra $50 usd, they could be making these in America and helping our economy and job market considering we buy the most apple stuff here but hey, whatever.