iPhone 3G for Malaysia

Remember iFixit? They were one of the first people known to disassemble the iPhone 3G. We’re still waiting for their findings on the inner workings of the device.

More recently, iSuppli also did tear down of the device, the findings are rather interesting.

We thought that it would be nice to share it with our growing group of iPhone 3G hopefuls.

First up, the 8GB iPhone 3G costs a whooping USD$174.33 in materials. This might seem expensive considering that the same version of the device retails for USD$199 with an AT&T contract. In some countries its even offered for free.

But get this, the iPhone 3G is USD$53 cheaper to make than the original. iSuppli says the original iPhone costs an eye-popping USD$227 to make. The saving is an amazing feat considering the iPhone 3G is faster and packs more features than the original.

Here’s the best part, you’d think that with USD$174.33 for materials to make the iPhone 3G, Apple would only make a measly USD$20 per phone. But you’d be forgiven to think that. iSuppli reveals that Apple’s margin for the iPhone 3G is the biggest in the mobile phone industry.

With each iPhone 3G…Apple is grossing a handsome 55% profit!

For perspective, Nokia – the world’s largest mobile phone manufacturer – makes an average of 36% gross on hardware margins. On some high-end models, the margin is 45%

How is Apple doing it?

Some are through the profit sharing and subsidies provided by service providers (like AT&T for example) but for the most part the industry leading profit margin is achieved by making the design of the iPhone 3G more cost-effective and efficient than its predecessor.

Stand alone (that means without contract), the iPhone 3G retails for USD$499 (8GB version). iSuppli tells us that Apple spends an estimated USD$50 on IP royalties for each iPhone 3G, taking into account the original cost of USD$174.33, that bumps the total cost of an 8GB version to USD$224.33. Even with that Apple still makes 55% profit.

iSuppli also shared with us the list of suppliers who manufacture parts that make up the iPhone 3G:

You’ll notice some big name suppliers like:

• Toshiba
• Infineon
• Samsung
• Broadcom

You will also be happy to know that Apple has made the following improvements on the iPhone 3G over the original:

• The redesigned internals of the iPhone 3G include only one large Printed Circuit Board (PCB), instead of the two nested PCBs found in the 2G version. The iPhone 3G uses a 10-layer board, compared to the less-expensive six-layer PCBs commonly employed in mobile handsets.




• The battery is not soldered into the iPhone 3G as it is done in the 2G, making it more serviceable.

So there you have it. Not only is the iPhone 3G cheaper than its predecessor, it packs more features, is faster and is better build too.

All the more reason why local telcos should bring the iPhone 3G to Malaysia.

Send in your support now. Together, we will make it happen!

Malaysia Boleh!