Apple's iPhone 4S Cracked Open, Money Spills Out

From the outside, Apple's iPhone 4S looks an awful lot like its predecessor, the iPhone 4. Apple fans and investors were initially so disappointed on October 4 when the phone turned out not to be a more revolutionary iPhone 5, the company's shares fell the day it was announced by more than $20 before recovering. Inside, the phone is similar too, but there have been some strategic changes from one generation to the next that have important implications for Apple's many suppliers. According to a teardown analysis conducted by the research firm IHS iSuppli, chipmaker Intel, which last year acquired the wireless operations of the German chip concern Infineon, has been almost entirely bounced out of the 4S in favor of a set of chips from Qualcomm. The shift to Qualcomm had been rumored as far back as last September. Before Intel acquired its wireless unit, Infineon had previously supplied Apple with a chip known as a baseband processor that Apple had used in combination with chips from Skyworks and Triquint to work with wireless phone networks. "Qualcomm is the big winner here," says Andrew Rassweiler, an analyst with IHS iSuppli who conducted the teardown. "It is selling Apple a whole suite of chips that adds up to about $14 to $15 per iPhone."

Clic..