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Report: 3G iPhone costs $173 to make

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How can Apple and AT&T put a relatively low pricetag of just $199 on the new 3G iPhone? According to research firm iSuppli, the answer is in the low cost of the components. iSuppli estimates the new 3G iPhone will cost just $173 to manufacture, which is significantly lower than rivals such as HTC's Touch Diamond (priced at $785) and Nokia's N96 (priced at $855).

iSuppli says that the most expensive component on the 3G iPhone is the 8 gigabytes of NAND flash memory storage, which the firm estimates costs $22.80. The second pricey element is the touchscreen, which costs about $20. In all, the chips and handset components add up to $164.  iSuppli tacks on another $9 for assembly for a total of $173.

For more:
- read this PC World article

Related stories:
AT&T will subsidize 3G iPhone
Photos: 3G iPhone Launched

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You're comparing retail unlocked prices for the Touch Diamond and Nokia N96 to a subsidized price for the iPhone 3G?
Isn't the Touch Diamond's subsidized price free (zero) on Vodafone, T-Mobile, and Orange?

I was quoting the article that was cited. But you're correct it's not fair to compare unlocked phone prices with subsidized phone prices.

Actually, it is $149. See my blog at: 4gmobile.blogspot.com.

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