BlackBerry making more profit on Z10 than Apple on iPhone 5

News Clare Hopping 08:31, 19 Feb 2013

BlackBerry is making a huge profit on all BlackBerry Z10 sales, after it has been revealed the decice costs less than £100 to produce

BlackBerry is making more profit than Apple makes on each iPhone with each sale of its BlackBerry Z10 device.

CrackBerry has broken down the true cost of the BlackBerry Z10 into components.

The list is as follows (prices converted from US dollars to sterling using today's rates):

  • Processor £15.14
  • Touchscreen £17.07
  • Cameras £9.66
  • Flash storage (16GB) £5.80
  • Other components £13.53
  • Remaining major materials £38.01 

Which totals a cost of £99.21.

The news comes on the day it has been announced the BlackBerry Z10 will go on sale in the UK SIM free from March for £534.

This represents a profit of around £434.79 for BlackBerry.

To give you an idea of how much this means if you're on a contract, we've totaled up the cost of a BlackBerry Z10 acorss the major networks ona  similat tariff (unlimited minutes, unlimited texts, 1GB data over 24 months):

Network Monthly cost
Lifetime cost

O2 £36 per month (plus £99.99 upfront) £963.99
Vodafone £37 per month (plus £69 upfront)

£957
EE £41 per month (plus £49.99 upfront) £1033.99
Three

(All Three plans include Unlimited data)

£36 for 2,000 minutes and 5,000 texts per month (plus £69 upfront) £933

Obviously, there are costs involved with buying a device on a contract, such as the cost to your network for calling, texting, data and line rental itself, so it's not surprising these costs are so high.

In comparison, a 16GB iPhone 5 costs around £133.35 to make according to Research firm IHS, and each iPhone costs £529 from Apple, so therefore Apple makes £395.65 profit on each device it sells - a whole £39 less than BlackBerry.

We always knew smartphone manufacturers made a lot of profit and there are other bits and pieces to consider, such as licensing, but even with these costs included, we've come to the conclusion that manufacturing a top-selling smartphone is certainly one way to make a hefty profit.

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