The new iPhone is costing Apple more to build than earlier models, according to a virtual "teardown" of the device by IHS iSuppli.

The firm estimates that the new iPhone 5 carries a bill-of-materials (BOM) of US$199 for the low-end 16GB model, alongside a US$8 manufacturing cost, pushing the total cost (BOM + manufacturing) to US$207. The 32GB and 64GB models are said to cost US$217 and US$238, respectively.

Without an operator subsidy, the iPhone 5 is priced at US$649 (32GB), US$749 (32GB) and US$849 (64GB), suggesting Apple is still enjoying a healthy margin. However, IHS Suppli's estimates only account for hardware and manufacturing costs and do not include other expenses such as software, licensing, royalties and other expenditures.   

“With the base model carrying a US$199 BOM, the iPhone 5’s components are expected to be slightly more expensive compared to the iPhone 4S model,” said Andrew Rassweiler, senior principal analyst, teardown services, for IHS.

Back in October 2011, the firm calculated that the low-end iPhone 4S carried a BOM of US$188.

“While the price of some components, such as NAND flash, has fallen during the past year, the iPhone 5’s overall BOM has increased mainly because its display and wireless subsystems are more expensive compared to the iPhone 4S,” Rassweiler added.

As in previous models, the costliest aspect of the iPhone 5 is estimated to be the display with integrated, in-cell touch sensing. At US$44, this subsystem is pricier than the combined total of US$37 for the iPhone 4S display with separate touchscreen based on pricing from October 2011.

The addition of LTE is estimated to have driven up the cost of the wireless radio in the iPhone 5 to US$34, compared to about US$24.00 for the iPhone 4S. .