Apple could be making £426 on every 16GB iPhone 5 sold, according to a new report.

TechInsights estimates that Apple’s 16GB iPhone 5 costs $167.50 (£103) to make, and with a selling price of £529, Apple could be making £426 on every sale of the device.

TechInsight’s estimations indicate that the iPhone 5 costs Apple more to make than the iPhone 4S, due to the 4in display, the A6 chip, and other improvements that have added £21.50 to the cost of building the device.

Apple has revealed that pre-orders of the iPhone 5 topped two million within 24 hours of its launch, doubling the record one million held by the iPhone 4S. This suggests that Apple could have made almost £1bn from its iPhone 5 by the time it is released on Friday.