Apple makes £425 profit on every Iphone 5 sold

GADGET DESIGNER Apple makes around £425 on every 16GB Iphone 5 sold, it has been revealed, with the device costing the company just £103 to build.

That's according to research firm Techinsights, which has revealed that the Iphone 5 costs Apple just £103.25 in manufacturing costs - around £20 more than the Iphone 4S.

The most expensive components of the Iphone 5 are its dual-core A6 processor and its 4in Retina display, which reportedly costs Apple around £15 each. The handset's 8MP rear-facing camera costs the firm around £6, its WiFi and GPS components cost around £2.50 and its battery costs just £1.85.

This breakdown reveals that Apple is making, before distribution costs of course, a whopping £425 on every 16GB Iphone model it sells at £529. Given that the company has already shifted 2 million units, this means the firm is rolling in cash from its latest smartphone release already.

These figures make the Iphone 5 the best-selling Iphone yet, although it's not set to arrive on shelves until Friday. In terms of specifications the handset features a 4in Retina display, a svelte 7.6mm chassis, Apple's latest IOS 6 operating system, an improved 8MP rear-facing camera and support for 4G LTE technology.

If you're happy handing over so much cash to Apple, the Iphone 5 is up for preorder in the UK. µ