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That said the table below presents the preliminary BOM and manufacturing cost estimate from IHS, based on the physical teardown of the iPhone 5S. As we noted, the price point is quite an achievement. Note as well the all-too-usual huge markup, and the $100 increments in associated RAM-based device costs. It continues to amaze us that Apple can get away with such huge markups for adding a few dollars worth of additional RAM (a doubling in each case from 16 to 32 to 64 GB) to each model!
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