iPhone 3G Parts Cost $174.33
iSuppli took a guess last month at approximately how much they thought the components of the iPhone 3G cost in total, concluding that it would be around $173<>. Of course, they didn’t actually have one then so they were just guessing, but now they’ve gotten their hands on one and they’ve calculated the price to be $174.33, not far off from their first estimate. Of course, this doesn’t include the cost of software development, shipping and distribution, packaging and miscellaneous accessories.
They believe that part of the reason for the dramatic drop in cost over the original iPhone’s parts is partly their attempt to lower the cost of the device for the consumer in order to widen their market as far as possible while they still have the buzz.
They believe that, apart from the $174.33 parts cost and manufacturing cost, Apple is spending about $50 on IP royalties per unit, and are getting a $300 subsidy from AT&T, making for about $499 per iPhone, and spending $224.33, giving them a royalty margin of 55% per 8GB iPhone 3G.