Droid Incredible costs just under $164 to build, iSuppli says

A while back, the Droid Incredible was torn apart and revealed some things we never knew it was capable of. Like an FM transmitter tuner, and full 720p video recording. Recently, however, another dissection done by iSuppli Corp’s reveals that the Incredible has a $163.35 Bill of Materials (BOM) price tag. Although the Nexus One’s BOM is slightly higher – $174.15 – the materials used are almost identical except, of course, support for Verizon’s CDMA network. What adds to the price tag? That bright AMOLED screen and DDR RAM for starters, and apparently that Snapdragon CPU isn’t in the bargain bin, either. Those three components cost about $90 total, and when you add in some of the other features such as the camera, Bluetooth, and all the mechanical and electro-mechanical gizmos, it adds up pretty quickly. This goes to show that building a quality smartphone costs more than nickels and dimes to the manufacturer, but the end result is definitely worth it. [iSuppli]

Adam Sawyer
  • wait, the dinc has an FM transmitter? as in, it has the ability to send my tunes over an FM frequency so that my car can tune in and play my songs over the car speakers? this would be awesome.
  • That would be awesome. But, sadly, that's not what it has. (Post updated.)
  • It's interesting to note that the carriers don't make much on the purchase of the device (unless out of contract). They're likely losing money on every sale when you account for the overhead of distributing and supporting the devices. Of course this doesn't matter when they mark up the price of text messages 10,000%.
  • Or the fact that they will make about $2,500 off of you over two years.
  • not sure what to think about this. I know the cost of labor, marketing,transporting and so on brings the cost up but.... I paid full price at a verizon store just to get away from bb storm. Love android, but was it worth not waiting another year for the subsidized price with a renewed contract? I paid about $500 more than the parts components cost.
  • It's just capitalism, nature of the beast. Besides all that overheard you mentioned isn't cheap either.
  • The title is misleading, but the story is not. The bill of materials is not the cost to build. Its the cost of parts. We all know that you have to add labor, plant depreciation, licensing fees, insurance, shipping, spoilage etc. But it does give us a guideline to judge both quality and cost in comparison to other phones like the iPhone or the Nexus One etc.
  • What are those DigiKey prices? I'm sure they're building them for a lot less considering volume.
  • probably more like $1.64
  • even if they do cost this much i dont care what verizon says. they are making a killing selling them out of contract. i paid almost 600 dollars for a device that is not even 200 dollars to make. not to mention they get all the parts in bulk which without a doubt brings that price down to atleast 100 dollars. i know labor and shipping ect. ect. brings the price up but there is no way that once this device hits the verizon retail store it adds up to a little under 600 dollars. this basically proves they are full of sh*t. they make ATLEAST 200 dollars on each device when selling out of contract. don't let them kid you, they are not fooling me at all.
  • Of course it doesn't add to "a little under 600". Everybody in the supply chain puts their markup on it to make their money. That is the way the world works. You paid exactly what you thought the phone was worth to you. Otherwise you wouldn't have bought it. What I don't understand is how anybody can make money on that Target Android tablet selling for $140.
  • You shouldn't go all crazy over the BOM price. Verizon is paying much more than that to HTC for these phones. HTC has to cover materials, labor, research, development, manufacturing and a host of other costs. If VZ is paying less than $400 a phone I'd be surprised and if it's less than $300 I'll eat my shorts. The ETF is what covers VZ's extra cost when you buy on contract, they know you'll be around for the term of the contract paying your bill. Without the ETF everyone would be paying full price, meaning VZ cost + VZ's own take.
  • That Price they came up with is for the cost of the materials.If you were to build one device or on car the cost would be high, but once you mass produce anything the cost drops substantially. This is how companies make money, by mass production and charging a little more than what the product actually cost.
  • This talk of Verizon's on-contract price keeps leaving out that we are all paying the full retail think approximately $10 a month for the data plan and $10 a month from the voice plan. Seems to me that we are ask paying around $400 plus the the up front cost. (note that they don't drop the price when one is off contract.... The second proof for me that the price is just made up is the iPhone vs iTouch they differ by twenty_thirty bucks in parts but one costs twice the other. The early differences was just the deletion if the cell specific chips. When the original iPhone came out they hinted that Apple was getting nearly $20 a month from AT&T.
  • I wonder how much the evo cost given a couple extra components.
  • I wish they would have spent and extra buck or two and put in a bigger battery.
  • I wished they put in another speaker , "stereo" I want stereo sound LoL . Now how tough can that be to add another tiny little speaker :p