Apple's newly released iPhone 5 boasts enhancements to virtually every component in it, according to analyst IHS iSuppli.
It's latest teardown revealed Apple kept many of the same suppliers for the iPhone 5's components, but the similarities end there, it said.
"The iPhone 5 exhibits a great deal of similarity to the iPhone 4S in terms of component suppliers. But beyond this superficial resemblance, there are some critical changes to product design and parts that enable major upgrades that improve user experience," said senior principal analyst, teardown services, for IHS Andrew Rassweiler.
"These range from the faster applications processor, to the larger display, to the high-speed 4G LTE air interface. And beyond some of the high-profile changes that bring obvious benefits in performance and features, there are myriad upgrades and enhancements to virtually every component and subsystem in the iPhone 5."
The iPhone's major enhancements come from many of the same components suppliers who worked on the iPhone 4S. The only major Apple supplier seeing a reduced workload from the latest iPhone is Samsung.
Despite Samsung's competitive relationship with Apple it will still provide A6 processors to the new iPhone. However, the teardown reveals that Apple has already started to phase out other Samsung components from its devices.
IHS's dissection revealed that the only new suppliers for iPhone components were SanDisk and Elpida. SanDisk replaced Samsung to bring its Nand flash memory to the iPhone 5. Elpida also replaced Samsung to bring 1GB of SDRAM to Apple's latest smartphone.
The teardown revealed a 68 percent retail mark up for the contract-less 16GB iPhone 5. The value represents a two percent reduction from the previous mark-up of the 16GB model of the 4S.
IHS reports that the iPhone 5 features more parts than its 4S predecessor. The firm points to the new iPhones 4G LTE broadband as the reason for the additional parts.
LTE requires that Apple make two versions of its latest smartphone. The versions offer different front-end radio frequencies depending on wireless carrier.
IHS says Apple is able to manufacturer two iPhone 5 models because of the low-cost of labour that the company employs.
"While most manufacturers make great effort to simplify designs by minimising the total number of mechanical parts and fasteners in their products, Apple appears to be going in the other direction with the iPhone 5," said senior principal analyst of teardown analysis for IHS Kevin Keller.
"The iPhone 5 incorporates even more mechanical parts than previous iPhone designs, resulting in a very complex assembly. But Apple can do this and still produce the iPhone 5 at such low costs due to its capability to leverage its vast army of low-cost labour."
Apple's low-cost Chinese labour recently made headlines when a 2,000 worker riot erupted at a manufacturing plant in Taiyuan. Worker advocacy groups say that the cause of the riot may be linked to poor worker conditions and rushed iPhone 5 production schedules.
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