iPhone 5: Cost Of Repairs For Latest Model Higher Than Older Ones; Why?

A cracked screen for those who have upgraded to the iPhone 5 may cost users around $30 more than the cost of the phone itself if purchased with a two-year contract.

The problem is the replacement parts, CNET reported. Apple now has a tight control over its parts, which are also more expensive than parts used on previous phones, a new report found.

"Apple controls everything from the manufacturing to the gear for the iPhone 5," editor at deal site TechBargains.com Jeff Haynes told MarketWatch. "Apple is trying to get people to sign up for Apple Care for $99 and to rely on their services at the Apple store. If you don't, that cracked screen could cost you at least $230."

The cost of fixing iPhone annually is $5.9 billion, with one-third of owners breaking their phones each year, according to gadget warranty firm SquareTrade.

Users could typically go to third-party repair shops to fix their devices, but now even those outlets are refusing to repair iPhone 5s due to the exorbitant prices, the Los Angeles Times reported.

The cheapest fix for iPhone 5s nowadays is AppleCare, a two-year warranty that costs $99 upon purchase. It allows users two times to fix accidental damage to the phone within that period for $49.

Apple is reportedly making changes to its warrant plan, making repair the default option as opposed to giving users with damaged devices new phones. The switch could save the company up to $1 billion.

Assemblies for previous iPhones were estimated at around $100. The assembly costs of newer models are about twice that much, which is also a contributing factor to its high cost of repair.