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After announcing its Oculus-powered Gear VR earlier this year, Samsung’s new virtual reality experience for its Note 4 smartphone is now available to order through its website and other retailers in the US. Samsung is still listing the $200 device as the “Innovator Edition” and warns that it’s “targeted specifically to developers or early adopters of technology,” so we don’t expect this to be a super polished experience just yet. The Gear VR also appeared on AT&T’s website earlier today, as noted by Phandroid, which means we’ll likely start to see it trickling out to other retailers despite no official press release from Samsung as of yet.
We went hands-on with the Gear VR headset earlier this year, which pairs only with Samsung’s new Galaxy Note 4, when the company first unveiled the hardware powered by technology from virtual reality company Oculus VR. Gear VR is available to order from Samsung’s website now for $200. Apple’s new iPhone 5, set for release this Friday, carries a bill of materials (BOM) of US$199 for the low end model, according to an analysis and virtual teardown by IHS iSuppli Tuesday.
The amount of flash storage is the only differentiating factor between the three models of iPhone (not including color differences), and the low price of flash memory chips allows Apple to make an even greater profit on the higher end models. Apple charges an unsubsidized price of $649, $749, and $849 for each model of iPhone and, according to the iSuppli analysis, makes $442, $532, and $611 per phone, respectively. Apple’s new 4-inch Retina display with in-cell touch technology accounted for a slight increase in the cost of materials.

Another big ticket item for the iPhone 5 is the highly anticipated addition of 4G LTE capability. A major decrease in cost for Apple comes from drastically reduced NAND flash prices over the last year. I hate when they do these cost of components studies because the hoi polloi never understand that the cost of R&D is not included. To many businesses, who prefer employees with college degrees, this level of spending would be insufficient to bring such a worker to market. With an estimated $8 manufacturing cost, Apple’s total cost to build a 16 GB iPhone 5 is $207.
The 32 GB iPhone 5 has a total manufacturing cost of $217, and the 64 GB model has a total cost of $238.
These profits only consider the pure hardware manufacturing cost and do not take into account research and development, advertising, distribution, and any licensing or royalties associated with software on the device. Apple’s previous iPhone, which had the advantage of sharing the same physical characteristics as its iPhone 4 predecessor, carried a BOM of $188.

The new display costs approximately $44, higher than the combined total of display and touchscreen on the iPhone 4S, priced at $37. While some smartphones from other manufacturers have featured LTE since 2010, the iPhone 5 is the first Apple phone to receive support for the ultrafast cellular data network. If so, you might enjoy hanging out with other like-minded folks on the Mac Geek Gab Facebook Group. Other sites are invited to link to any aspect of this site provided that all content is presented in its original form and is not placed within another frame. The Mac Observer is an independent publication and has not been authorized, sponsored, or otherwise approved by Apple, Inc.
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