This, of course, does not factor in other costs, such as development, distribution, marketing and taxes, while TechInsights notes that the figure is just an estimate as the iPhone 5 has not been fully analysed.
TechInsights has compiled the report on what it believes are the costs of producing the new smartphone, which shifted 2m pre-orders worldwide in just 24 hours from September 14, doubling the record of its predecessor, the iPhone 4S.
Announced last week, the new phone features a larger 4-inch screen boasting a resolution of 1136 x 640 and 326 pixels per square inch. It also comes with Apple's new GPU A6 processor, improved camera technology and support for 4G LTE connectivity.
Apple has remained relatively tight-lipped on exact details about what is inside the iPhone 5, but TechInsights has made a number of estimates based on information that is available.
It estimates that it costs Apple $167.50 (£103) to make the iPhone 5 model with 16GB of storage. Due to improvements in processor and display standards, the phone is more costly in production than the iPhone 4S ($132.50) and the iPhone 4 ($112).
However, Apple is charging £529 for the SIM-free version of the iPhone 5 16GB, meaning it is making £426 on each handset sold.
"Apart from the introduction of a new processor, a larger image sensor and a new screen size, Apple was quite mum on any other new changes to the iPhone 5," it said.
"The only way to know for sure is to take a look inside, and TechInsights will be doing so on September 21 as we will take apart the iPhone 5 and determine every major component inside the next generation of Apple's top-selling handset."
The most expensive components of the iPhone 5 are the dual-core A6 processor, which reportedly costs £17, and the 4-inch Retina display, which is said to cost Apple £11 per handset.
The iPhone 5's 8MP rear-facing camera is claimed to cost the firm around £6, while the 16GB of internal storage costs £5.50 and the battery just £1.85.
Apple's new smartphone is available now for pre-order and registration on mobile contracts. It will go on sale in key international markets, including the UK, on September 21.
Video - iPhone 5 public reaction: