EL SEGUNDO, California, July 3 /PRNewswire/ --

In terms of cost, iSuppli Corp.'s teardown analysis of Apple Inc.'s 
iPhone offered few surprises, with its Bill-of-Materials (BoM) closely 
conforming with our preliminary functional estimate issued in January. 
However, in terms of suppliers, the iPhone is packed with surprises, with 
newcomers Infineon Technologies AG, National Semiconductor Corp. and Balda 
providing key components in the product -- along with established component 
makers like Samsung Electronics Co. Ltd. -- according to iSuppli's Teardown 
Analysis service.

"iSuppli's teardown, conducted this weekend, determined that the 8Gbyte
version of the iPhone has a total hardware BoM and manufacturing cost of
US$265.83, generating a margin in excess of 55 percent on each 8Gbyte iPhone
sold at the US$599.00 retail price," said Andrew Rassweiler, principal
analyst for iSuppli.

In January, before iPhones were available for physical teardown, iSuppli
estimated a US$264.85 hardware BoM and manufacturing cost for the 8Gbyte
iPhone. Note that these costs do not include royalties and logistics 
expenses.

iPhone Semiconductor Winners

Infineon, a new supplier to the iPod family, was among the biggest
winners in terms of semiconductor content. The German semiconductor supplier
contributed the digital baseband, radio-frequency transceiver and
power-management devices, providing much of the core communications
capability of the iPhone. Altogether, Infineon's silicon content accounted
for US$15.25 worth of the iPhone's BoM, representing 6.1 percent of the
8Gbyte version of the product's total cost.

National's contribution to the iPhone BoM is relatively small, with its
lone chip in the product costing US$1.50, which represents less than 1
percent of total product cost. However, the part-a serial display
interface-represents an important design win for National, which has never
had a part in an iPod.

TPK Solutions (Balda) gets touch screen module, Epson gets display

One of the key features of the iPhone is the display, and the supplier
for the display module in the model torn down by iSuppli was Balda of Germany
in association with its partner TPK Holding of China. The module costs an
estimated US$27, representing 10.8 percent of the 8Gbyte model's cost.

For a complete version of this report, including a table presenting key
component suppliers, please visit:
http://www.isuppli.com/news/default.asp?id=8117&m=7&y=2007.

All Information and Intellectual Property Contained Herein is the Sole
Property of iSuppli Corporation

About iSuppli Corporation

iSuppli Corporation is the global leader in technology value chain
research and advisory services. iSuppli provides market intelligence services
for the EMS, OEM and supplier communities in addition to servicing consumer
electronics and media concerns. Services afforded by iSuppli range from
electronic component research to device-specific application market
forecasts, from teardown analysis to consumer electronics and from display
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information is available at http://www.isuppli.com

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