PDAStreet.com > News > AT&T, RIM Are Bold in Pricing AT&T, RIM Are Bold in Pricing
By Judy Mottl
RIM's newest handset, which arrives Election Day with a $299 pricetag for AT&T data services subscribers, costs just about $170 to make, according to a detailed report from iSuppli, a research and advisory firm known for detailed "teardown" analysis of product cost. The report provides a window into how much components in smartphone devices cost these days. This one lists out costs on 15 components, including processor (the highest-priced device part at $34.34), keypad assembly (the cheapest piece at $1.85), camera ($9.90) and display ($16). iSuppli’s research reveals a direct bill of materials (BOM) cost of $158.16 and a manufacturing cost of $11.25 for a total of $169.41. Marketing, research and development and other product development lifecycle costs are not included in the report figures. With consumers pulling back on spending in a slowing economy, smartphone makers are getting more aggressive on pricing to entice, and looking for areas where they can reduce pricing. Handset makers typically partner with carriers for device sales, with carriers paying a fee for each unit sold. For example AT&T, which sells the new iPhone 3G for $199 with a two-year data plan subscription, pays Apple $300 for every iPhone 3G it sells. See here for the rest of this story at InternetNews.com. Related Links:
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