If you were trying to build a Blackberry from the parts it would set you back $153.69. But Blackberry will charge you $827.17. This means that, excluding marketing and other costs, for every phone sold, Blackberry makes $673.49.
Here is the breakdown:
Flash storage (16GB) $9.00
Other components $ 21.00
Remaining major materials $ 59.00
To make matters worse, the costs of owning a Blackberry on a contract are also pretty heavy. If you buy one from Vodafone, for example, it will cost you £37 per month (plus £69 up front) – so the phone ends up costing you over a grand.
The iPhone 5 costs around $206.56 to make according to tear downs from research firm IHS, and each iPhone costs $819.42 to buy from Apple. This means that Apple makes $612.86 profit on each it sells.
Given that Apple was considered the mark-up king for its products, the fact that Blackberry has decided to take the game to a whole new level is interesting. Of course it is unlikely that Blackberry will ever sell as many of its mobile toys as Apple.