iPhone: A Look Inside

by: SA Editor Eli Hoffmann July 02, 2007 | about stocks: AAPL / ARMH / BRCM / IFX / INTC / LLTC / MRVL / MU / NSM / PHG / RFMD / STM / SWKS / TXN

SA Editor
Eli Hoffmann

About this author:

Bio & more articles

Become a Contributor Submit an Article

Font Size:
Print
Email

Analysts at RBC Capital Markets and Portelligent research broke open the iPhone and got an unprecedented peek at its bowels. Their findings are sure to be of great interest to chip, memory and display technology investors. Here's what they found: (1) No Intel inside. No surprise here; investors had been warned in advance that iPhone's main processor would not be made by Intel. Samsung got the nod on the core chip; its design is owned and licensed by ARM Holdings. (2) Intel does make the iPhone's 32-megabit flash memory. (3) I/O chip: Broadcom. (4) Power management: Texas Instruments, Linear Technology and Philips. (5) WiFi: Marvell. (6) Camera sensor: Micron. (7) Front-end power amplifier: Skyworks. (8) Display driver: National Semiconductor may be its supplier. (8) Touch screen: German manufacturer Balda. (9) Wireless components: Infineon, RF Micro Devices. (10) Orientation sensor: ST Microelectronics. Portelligent research's David Carey estimates the cost of the iPhone's materials is about $200 for the 4-gigabyte version ($499) and $220 for the 8-gigabyte model ($599); his estimates exclude final assembly costs.

Sources: TheStreet.com, Business Week
Commentary: That $599 iPhone Costs $220 To Make [TechCrunch] • iPhone Consumers Prepare For Teardown • iPhone Plays holdings [Stockpickr] • iPhone Disassembly (picture gallery) [Ifixit]
Stocks/ETFs to watch: Apple Computer Inc. (AAPL), Intel Corp. (INTC), Broadcom Corp. (BRCM), Texas Instruments Inc. (TXN), Marvell Technology Group (MRVL), Micron Technology Inc. (MU), Skyworks Solutions Inc. (SWKS), National Semiconductor Corp. (NSM), ARM Holdings plc (ARMHY), Koninklijke Philips Electronics N.V. (PHG), Linear Technology Corp. (LLTC), Infineon Technologies AG (IFX), RF Micro Devices Inc. (RFMD), ST Microelectronics N.V. (STM)

Video: How to dissect the iPhone

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

Diodes, Inc. Q3 2008 Earnings Call Transcript Nov 21, 2008
Former Wall St. Favorites Currently in Single Digit Territory Nov 20, 2008
Novellus Systems, Inc. Q4 2008 Mid-Quarter Update Earnings Call Transcript Nov 20, 2008
Aruba Networks F1Q09 (Qtr End 10/31/08) Earnings Call Transcript Nov 20, 2008
Aviza Technology Inc F4Q08 (Qtr End 9/26/08) Earnings Call Transcript Nov 20, 2008

Related Stocks:

AAPL, ARMH, BRCM, IFX, INTC, LLTC, MRVL, MU, NSM, PHG, RFMD, STM, SWKS, TXN

This article has 2 comments:

Jul 02 04:39 PM
So what it boils down to is that this is likely to be hugely profitable for Apple as the contribution margin is either $299 or $380 each. Just goes to show the value of a brand...
Reply
Jul 02 05:15 PM
... and that the value is migrating from hardware components to software and usability/design.
Reply

More Comments on AAPL »

More by SA Editor Eli Hoffmann

Ultra Brite Outlook for Colgate - Barron's
on Nov 16, 2008 | about CLX,GIS,CL
Some Food Stocks Still Look Tasty - Barron's
on Nov 16, 2008 | about K,HSY,CPB
Wall Street Breakfast: Must-Know News
on Nov 11, 2008 | about AXP,BAC,AGO
Wall Street Breakfast: Must-Know News
on Nov 10, 2008 | about C,AIG,AZN

Articles on related themes

Hedge Fund Jobs

Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »

Employers: See all recruitment options, get applications online or by email Post a job »

Trading Center

Free E-Newsletters
Wall Street Breakfast - Sample Wall Street Breakfast: Must-Know News by SA Editor Rachael Granby Bank trio becomes duo. Wells Fargo (WFC) will become the largest U.S. bank by branches with its bid for Wachovia (WB), after Citigroup (C) withdrew from compromise negotiations late yesterday on concerns about the quality of some of Wachovia's assets. Wells Fargo, with a bid valued at $11.4B, expects the purchase to be completed by the end of the year, and denies it will have to absorb assets shakier than originally thought. Government considers next steps. As the financial crisis continues to worsen, the U.S. government is considering two dramatic steps to turn around, or at least slow, the damage: guaranteeing billions of dollars in bank debt and temporarily insuring all U.S. bank deposits. The moves, which would mark the government's most extensive intervention to date, are in discussion stages only. Credit stays frozen. As frozen credit markets refuse to thaw, the cost of default protection on corporate bonds reaches new global records amid investor concerns the credit crisis will trigger corporate failures as companies struggle to finance their businesses. Interbank lending remains limited, and borrowing from the Fed's expanded discount window continued its trend of setting new highs every week, as the total daily average rose to $420.2B vs. $367.8B last week. Oil demand withers. The International Energy Agency warned Friday worldwide oil demand... Email continues...
The Macro View - Sample Seeking Alpha - The Macro View Market Outlook An Outcry from Emerging and Developed Markets Alike by Jonathan O'Shaughnessy Long Term, Financials Look Good by Michael Filloon Round 3 of the Recession: Main Street by Paul Fekula Oil Price Oil Below $75: Increased Chance of OPEC Production Cuts by Money Morning Oil Down 48% from Highs by Bespoke Investment Group Oil & Gas Headed Lower as Economy Strikes Consumers by Michael Filloon Economy Long Term, Financials Look Good by Michael Filloon Round 3 of the Recession: Main Street by Paul Fekula Reality Bites As Stocks Continue To Collapse by The Mole Email continues...
Investing Ideas - Sample Seeking Alpha - Investing Ideas Cramer's Picks Farewell Financial Bear Raids - Cramer's Mad Money (10/14/08) by SA Editor Joan Wickham Better Picks - Cramer's Lightning Round (10/14/08) by SA Editor Joan Wickham Perhaps Industrials... Cramer's Stop Trading! (10/14/08) by SA Editor Joan Wickham Long Ideas Utilities Beginning to Generate Interest for Longs by Joe Kunkle The Long Case for Encore Capital by Value Investor Insight 2009: The Year of the Channel for SaaS Vendors? by Jeff Kaplan Two Global Infrastructure Investment Opportunities in ETFs by Investment U Market Behaves Sanely - Fast Money Recap (10/14/08) by SA Editor Joan Wickham Short Ideas Why Short Sellers Are the Heroes of Wall Street by Investment U Salesforce.com: Pricey and Coming Down Fast by Charlie Bottle Google: 3Q Results Reveal Chinks in the Armor by Mark Krieger Email continues...
Jim Cramer's Picks -
Sample

Better Choices - Cramer's Lightning Round (10/15/08)

by SA Editor Rachael Granby

Stocks discussed in the lightning round session of Jim Cramers Mad Money TV program,
Wednesday, October 15.

Bullish Calls:

Continental Resources (CLR) -- "This is a remarkable decline. All of the high quality ones are down so much, I can't go against it. This is where you pull the trigger.
3M (MMM) -- The moment this stock starts yielding 5%, I'm a buyer. Until then, keep your powder dry.

Bearish Calls:

Computer Sciences (CSC) -- This is a company that was going to be bought, but they passed up the chance. Now I don't want to buy it."
Annaly Mortgage (NLY) -- I think this is a business model that needs to borrow money. Definitively do not buy."
Northrop Grumman (NOC) -- You can't own the defense stocks right now. If I had to own one, I'd look at Lockheed Martin (LMT) with its good dividend.
Email continues...
Stocks & Sectors - Sample Seeking Alpha - Stocks & Sectors Internet eBay: Q3 Looks Good but Q4 Guidance Disappoints by Greg Feirman Is Google Feeling Lucky? by Sam Gustin Why Today Could Suck for Tech by Kevin Maney Media A Triple Financial Whammy Afflicts Newspapers by Ken Doctor Three Years On, Buying MySpace Looks Like One of Murdoch's Smartest Bets by Erick Schonfeld How Will Arbitron Fare in This Market? by Sreeni Meka Telecom Ten Ways to Invest in Louisiana by Stockerblog Earnings Preview: Electro-Optical Engineering by theflyonthewall.com Shared Docks Via WiFi All the Rage by Dean Bubley Financial Switzerland Strengthens Its Banks; Short Interest Remains Low by Jessica Johnson Reality Bites As Stocks Continue To Collapse by The Mole LIBOR Shows Worst Is Yet to Come for Credit Markets by Keith Fitz-Gerald Email continues...
Global Markets - Sample Seeking Alpha - Global Markets China An Outcry from Emerging and Developed Markets Alike by Jonathan O'Shaughnessy USANA Health Sciences Inc. Q3 2008 Earnings Call Transcript Perfect World Announces Share Repurchase Program by Trader Mark China: Hot Money Inflows Down, Nervousness Up by Michael Pettis India Indian Economy Has Much to Cheer About by Equitymaster India: RBI Cuts Cash Reserve Ratio by Equitymaster India: Markets Continue Downward by Equitymaster Japan Sanyo Enters Thin-Film Market, Goes Up Against Sharp by Greentech Media Asia Four International Dividend Stocks to Watch by David Hunkar Eastern Europe Reality Bites As Stocks Continue To Collapse by The Mole Email continues...
Alternative Energy Investing - Sample Seeking Alpha - Alternative Energy Alternative Energy Seven Stocks for an Impending Apocalypse by H.J. Huneycutt Solar Shares Under Pressure From Credit Crunch and Pricing by Eric Savitz Trina Solar Looks Good, Though Market Yawns by Trader Mark The Electric Car Market: Wise Energy Use Stocks by Tom Konrad Investing in the Power of the Sea
ETF Daily - Sample Seeking Alpha - ETF Daily Sector ETFs Too Early To Buy Homebuilders ETF by Larry MacDonald Utilities Beginning to Generate Interest for Longs by Joe Kunkle Two Global Infrastructure Investment Opportunities in ETFs by Investment U New ETFs First Trust Launches Infrastructure ETF with Global Reach by Index Universe Overview and Analysis of the Global Generic Drug Industry by Mike Havrilla Emerging Market ETFs Brazil Is the Best of BRIC by Carl T. Delfeld Playing the Market in Difficult Times by Jason Hamlin
The Daily Dispatch - Sample Seeking Alpha - Daily Dispatch Wall Street Breakfast Wall Street Breakfast: Must-Know News by SA Editor Rachael Granby US Market An Outcry from Emerging and Developed Markets Alike by Jonathan O'Shaughnessy Wall Street Breakfast: Must-Know News by SA Editor Rachael Granby Housing & Real Estate Too Early To Buy Homebuilders ETF by Larry MacDonald Another 'Root Cause' That Isn't: Tumbling Home Prices by Tim Iacono Transcripts TrueBlue, Inc. Q3 2008 Earnings Call Transcript Polycom, Inc. Q3 2008 Earnings Call Transcript ETF Too Early To Buy Homebuilders ETF by Larry MacDonald
We don't spam

Popular Tools
Stock Market Toolbar
Stock Search Add-on
Power Search
Email Alerts
Live Feeds (RSS)

About Seeking Alpha
About Us
Contact Us
What's New
Readers Feedback
Advertise With Us

Contributors
Contribute an Article
Feature Your Book
Our Contributors
Anonymous Contributions
Dispute an Article?

Legal
Terms of Use
Privacy
Copyright

Stock Market Opinion & Analysis

Symbols:

Authors:

Seeking Alpha