My heart's in the Highlands, my heart is not here - Robert Burns
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Iphone costs $173 to build
THE SECOND COMING of the saviour of mobile telecommunications, the Apple Iphone G3, costs $173 to make in parts and assembly costs alone. And that doesn't include R&D costs, software development, packaging, accessories or haulage.
The teardown, published by research outfit Isuppli, is an estimated Bill of Materials (BOM) for the 8GB version of the handset, and lends even more credence to the assumption that airtime providers will be heavily subsidising the cost of the handset to end users.
So if you fancy getting yourself down to Maplin's (or Radio Shack for our colonial chums) and cobbling together a home-made Iphone for yourself, here's your shopping list.
Apple won't mind if you build it yourself... honest. µ
L'Inq
Isuppli
Tags: Apple
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Whats wrong with your Data-Server, none of the Picures are shown correctly? On the 4850 Test and on this one... maybe worth a look.

[Server hiccough! Pix fixed now.. PH.. And not my fault Mr Drashek]
From ~$250 last year to $173 today. So, on the black market somewhere in Asia it will go actually probably for $75. Poor competitors, even though iPhone is not a VGA.
meke numbers, you are getting a profit of 26u$ per phone PLUS the money you are taking from mobile operators per phone, be conservative and assume a 50u$ profit per phone sold.
Now at this range price, i predict the iphone being the number one phone sold in the world, maybe 10.000.000 phones till year end?
multiply this number by the profit, and you have half a billion dollars, and a increasing fanbase of mac products.
WIN WIN situation, for everyone. i dont like it to use as a phone, but would be a good mp3 player for my car and google search everywere. I will absolutely buy one. (i don't like mac products AT ALL, they are way too gay for me)
Those are retail priices, I dont think apple goes down to maplins digikey to buy their stuff. (if it was radio shack it would be $700)
As anyone who has ever BOM'd a design would know, those numbers are estimates - i.e. their best GUESS at what Apple is paying for the parts. The actual prices are heavily dependent on volume discounts, and on how well Apple can turn the screws on their suppliers.

Jim
at $7 for a 2MP camera, I'm struggling to understand why they didn't choose to upgrade it in the new version. What was a 3.2MP going to cost, another $2.
Phone companies like AT&T and Orange are expected to pay Apple anywhere from $300 - 450 per phone in additional subsidies. Basically, Apple will make $20 + $300-$450 per phone * 10 mil = $3.20 - 4.7 Billion, if sales are 10 Mil. 

Estimates are for 30 mil+ phones next year. You tell me how much profit Apple is expected to make on iPhone. You are CLUELESS.
If these numbers are true apple's margin's on this must be astronomical. The street price is irrelevant, what with it being so heavily subsidised (initially at least). The real price networks pay must be in the region of £400-500- and considering it costs £90 to make....

I guess this explains somewhat apple's decision to stick with the bare minium specs,no upgraded camera, screen or storage etc more $$$ for them... the fanboys will buy no matter what, more fool them.