With iPhone 4, Apple again proved his ability to build low-cost products but sell with the value premium. As a result, Apple continues to be a leader in consumer electronics design. Apple Inc’s latest smartphone production, namely the iPhone 4, presents a radical design differences compared to the previous generation iPhone. Include the use of Retina-tech display, dual digital camera, and a new shell.
Still, research firm iSuppli Corp. found, the Apple iPhone was able to produce four at a cost of material (bill of materials / BOM) is not too much different than the previous generation iPhone. As a result, iPhone 4 remains a profitable product for Apple.
Based on the analysis performed surgery to iSuppli, Apple is known that to produce 16 GB iPhone 4 with memory BOM USD187, 51 per unit. In comparison, Apple is known to produce 3G iPhone released S prime in 2009 with BOM USD170, 80 per unit. Another comparison, Apple iPhone 3G version produced in 2008, with BOM USD166, 31 per unit. While the first generation iPhone is released early in 2007, has a BOM USD217, 73.
With the iPhone 4, Apple proved his ability again in making the electronic components into products of low-cost production but is more feature rich. With this strategy, Apple is capable of very large Profit from its products because Apple products are marketed at a cost premium, thanks to the superiority of design and user interface (UI) provided.
Based on the findings of iSuppli, Apple is actually using hardware components of the middle class in developing its products. Even so, Apple is able to sell these products at high prices because Apple presents an attractive design and architecture as well as functional. iSuppli rate, the composition of the iPhone really is not much different than 1.1 billion units of other phones that were sold in the world in 2009, the mobile chip, memory chips and power amplifiers. However, Apple’s iPhone to be special because it is able to present a balanced combination between ease of operation, convenience of use, and diversity of content.
Because of highly profitable products, iSuppli confirms, not surprisingly, Apple now has a capitalization of approximately USD234 billion, the alias is far greater than Microsoft Corp., which is only about USD219 billion. More than that, iSuppli reveals that Apple also has a cash capital of about USD 23 billion.
With that much cash capital, iSuppli reveals, Apple has become increasingly dominant in the consumer electronics market and information technology. If Apple intends, confirms iSuppli, Apple could buy half the shares actually Nokia Corp., Motorola Inc. or all of the shares to control the companies, if Apple feels threatened.
New variants of the iPhone is targeted on high-end customers because of high priced. With new iPhone, Apple is able to obtain a large enough profit. But when the latest iPhone stormed the market, Apple does not stop production of the previous generation iPhone. Therefore, Apple is still selling the old iPhone, but at a price far cheaper than the latest generation iPhone. With the old iPhone, Apple is able to serve the middle-class consumers, while increasing market share in smartphoneglobal.

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