BlackBerry Storm Costs More To Make Than iPhone - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Devices
News
1/29/2009
02:31 PM
50%
50%

BlackBerry Storm Costs More To Make Than iPhone

According to a breakdown by iSuppli, the touch-screen BlackBerry costs $203 to make, $30 more than Apple's smartphone.

Research In Motion's first touch-screen BlackBerry is more expensive to make than its rivals, according to a breakdown by iSuppli.

The company said the BlackBerry Storm costs about $203 to make, compared with the $173 it costs Apple to make an iPhone 3G. The most expensive part of the Storm is the $35 Qualcomm chip, which could make the Storm available in more countries eventually because it can use GSM and CDMA networks. The iPhone is currently only available for GSM networks.

The Storm often gets compared with the iPhone 3G because both handsets sport a large touch screen, have messaging, and feature strong multimedia capabilities. The major difference between the two is the input method, as Apple's smartphone utilizes a capacitive touch screen capable of multitouch manipulation. The Storm's touch screen uses SurePress technology, and the customer has to physically push down on the screen for input. RIM took this approach because it wanted a more tactile feel, which would make sending messages more familiar to BlackBerry users.

Despite coming out to mixed reviews and shaky software, Verizon Wireless was able to sell 1 million Storms in about 72 days. While this is a good pace for nearly any phone, the iPhone 3G was able to hit that figure in its debut weekend, although it was available in more countries.

While the breakdown does not represent the full cost of the device because it doesn't include research, marketing, distribution, and other factors, it does give a good estimate on the margins of the devices. Additionally, those cost differences begin to add up when the shipment volumes increase. Verizon is the exclusive U.S. carrier of the Storm, and it sells the smartphone for $199 after a rebate and a two-year contract. AT&T is the exclusive carrier of the iPhone 3G, and it costs $199 with a new two-year contract.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Commentary
Is Cloud Migration a Path to Carbon Footprint Reduction?
Joao-Pierre S. Ruth, Senior Writer,  10/5/2020
News
IT Spending, Priorities, Projects: What's Ahead in 2021
Jessica Davis, Senior Editor, Enterprise Apps,  10/2/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
Slideshows
Flash Poll