BlackBerry Z10 More Expensive To Make Than iPhone 5
Z10 teardown reveals components are more expensive, but will still yield BlackBerry a massive profit
The cost of manufacturing a BlackBerry Z10 could be more expensive that of the iPhone 5, according to a teardown by specialists TechInsights.
The estimated cost of components in BlackBerry’s new flagship smartphone has been estimated to be around $154 (£99.56), compared with the estimated $139.20 (£90) cost of materials for the iPhone 5.
However, given that a SIM-free BlackBerry Z10 currently retails in the UK for more than £500, BlackBerry could be set to make a massive profit on the device.
BlackBerry Z10 teardown
The most expensive component is the device’s 4.2-inch touchscreen which costs £26.50 (£17.12), followed by the Qualcomm-manufactured processor which is $23.50 (£15.18). The cameras set BlackBerry back $15 (£9.69) for every device, while the flash storage is £9 (£5.81). BlackBerry’s bill for other components amounts to $12 (£13.56), while other major materials total $59 (£38.12).
TechInsights noted that the BlackBerry Z10 contained a number of ‘familiar’ components that it had seen in a number of other smartphones in 2012 and that it shared many similarities with the Samsung Galaxy S III LTE.
Qualcomm manufactured the processor, power management IC and GPS, while Samsung itself provided a few key components such as the 2GB of RAM and 16GB flash memory. Texas Instruments, previously a prominent supplier to BlackBerry, provides only one major component, a single-chip radio incorporating 802.11a/b/g/n WLAN, Bluetooth, and FM.
“These design wins underscore Qualcomm’s continued prominence in the smartphone component space and highlights the impressive run the San Diego communications component manufacturer in scoring major design wins in globally-successful smartphones and tablets,” said TechInsights.
Good hardware
The BlackBerry Z10, along with other smartphones running BlackBerry 10, is seen as critical to the newly renamed BlackBerry’s hopes of a recovery after seeing its share of the market eroded by rivals like Apple and Samsung. Techinsights said that although BlackBerry’s Z10 marketing was focused around the software rather than its hardware, the smartphone is certainly comparable with its competitors, even if it lacked innovation and a “wow factor”.
“All in all, the Blackberry Z10 seems to incorporate many of the component selections of the Samsung Galaxy S3 LTE,” said the firm. “It’s not certain if these decisions the designers made on what semiconductors, ICs and other modules to use were by design or by accident but based on the relative success of the Samsung Galaxy S3, it isn’t a bad model to draw from.
“It remains to be seen if a name change and a new product philosophy will make an impact in smartphone market with established leaders like Samsung or Apple, however, it is a positive step forward that the company now has handsets that can compete at the software and hardware level with the best handsets the industry has to offer.”
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