BlackBerry Z10 costs as little as $154 to make

News Tony Crammond 04:48, Feb 19 2013

BlackBerry's premium Z10 may cost more than the iPhone 5 to make

The BlackBerry Z10 hasn’t enjoyed the most stellar launch in product history, and things may not be likely to improve after CNN Money set out to show just how much the device costs to make, in basic terms – and settled on the figure of $154.

The magic figure was reached by adding up the sum total of the device’s parts and it breaks down like this:

  1. 4.2-inch display - $26.50
  2. Qualcomm 1.5GHz quad-core CPU – $23.50
  3. 8-megapixel primary camera and 2-megapixel secondary – $15
  4. 16GB on-board storage – $9
  5. Battery, RAM, assorted other components – $21
  6. Housing, supplementary costs - $59

The breakdown doesn’t include labor costs, which could add a few more dollars on top, but we don’t presume that RIM is handing out record breaking wages to its sub-contractors, so it’s going to be a negligible factor, and then there’s the cost of actually developing the device, which is unknown at this stage, but we’re pretty sure it won’t add up to the $2600+ that you’ll have to pay to get the device on, say, Verizon’s network.

The Z10 hasn’t officially launched SIM-free yet either, but users can grab a totally unlocked, unbranded one on Solavei if they’re willing to fork out $999 for the privilege, which amounts to roughly a 600% mark-up on the sum of the device’s parts, and rather a rough deal for the consumer, especially when taking the $50 per month fee into consideration, even if it does net you unlimited voice, text and data.

But the issue isn’t an isolated one and RIM is by no means the only OEM to be tearing the back end out of buyers with its retail prices. Apple’s wildly popular iPhone 5 costs just $139 to make by CNN Money’s reckoning, and when you figure that the device will cost you around $2600 on a 2-year plan too, it doesn’t add up to a much better deal.

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