Taking the iPhone Apart

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Apple recently announced that it had improved the talk time on the iPhone's battery to eight hours. At least some of this improvement was accomplished by paying close attention to power management. Three chips are involved in that function: one from Philips, one from Texas Instruments (TXN), and one from Linear Technology (LLTC).

Handling various aspects of the wireless communications on the iPhone, from connection of AT&T's (T) wireless voice and data network to local Wi-Fi networks, are components from Infineon (IFX), Skyworks (SWKS), RF Micro Devices (RFMD), and Marvell Technology Group (MRVL). Cambridge Silicon Radio supplied chips that connect the iPhone to wireless headsets.

An accelerometer—a chip that senses motion—from STMicroelectronics (STM) helps the iPhone sense when its orientation has changed, which causes the orientation of pictures and video being displayed on the screen to change accordingly. Also handling various aspects of the display are chips from National Semiconductor (NSM), Broadcom (BRCM), and NXP. Idaho-based Micron Technology (MU) supplied the imaging chip that is central to the camera.

Mysterious Maker

Carey points out that the chip-packed iPhone offers "a very calm and serene user experience" that belies its internal complexity. "A great deal went into the internal mechanics and how it all came together," he observes. "There are lots of tiny nooks and crannies where things have to be very precisely tucked in to make it all fit together."

The complex design calls for equally complex manufacturing, which dictated that the iPhone be made outside of the U.S. "You have to build something like this in a place where labor is inexpensive," says Carey, which in this case means China. But Carey says it's unclear who manufactured the iPhone: "There are no markings indicating exactly who built it."

Apple's iPods have been built by Hon Hai Precision Industry and its Foxconn operating unit. BusinessWeek reported in January that Hon Hai had won the contract to manufacture the iPhone (see BusinessWeek.com, 1/10/07, "Apple iPhone: Sweet Ring Tone for Hon Hai"). But last month Samuel Chin, CEO of Foxconn, told investors that the company would not be making the iPhone. "Previous devices that Foxconn had made for Apple had their markings stamped all over the place," Carey says. "We just don't know who's making this one yet."

Apple had come under fire in 2006 for doing business with Hon Hai after allegations emerged in a British newspaper that its employees worked under sweatshop conditions (see BusinessWeek.com, 6/29/06, "Fixing Apple's 'Sweatshop' Woes"). Subsequent Apple investigations found some problems that it insisted be fixed and were fixed (see BusinessWeek.com, 8/21/06, "Hon Hai: Vindicated by Apple Report?").

Hesseldahl is a reporter for BusinessWeek.com.