3G iPhone Costs $173 To Manufacture
Market researcher iSuppli can tell us why the 3G iPhone is so cheap, the mystery is now solved, as they found out it only cost $173 to make the $199 iPhone. Two reasons for being cheap, low cost materials and providers will subsidize the handset paying Apple $300 per unit.
From AP, The most costly components of the new phone are, apart from the memory, the touch screen and the underlying display, at $20 each. The Global Positioning System chip, missing from the first iPhone, costs $3.60.
Source: New Apple iPhone will cost $173 to make
