Apple's lower-spec iPhone 3GS model costs approximately $179 in materials and manufacturing, according to a teardown analysis released on Wednesday by research group iSuppli.The 16GB version of the iPhone 3GS carries a bill of materials of $172.46 and costs $6.50 to make, iSuppli estimated. This compares with last year's estimate of $174.33 for the 8GB iPhone 3G, and the first generation 8GB iPhone's estimate of $227.
The 16GB model retails for $199, but of course is heavily subsidized. Interestingly, the 8GB iPhone 3G continues to be sold, at $99, which would place that price (stiil subsidized, mind you) below the cost of the device.
ISuppli analyst Andrew Rassweiler said in a statement:
"By leveraging this commonality to optimize materials costs, and taking advantage of price erosion in the electronic component marketplace, Apple can provide a higher-performing product with more memory and features at only a slightly higher materials and manufacturing cost."According to Apple, the iPhone 3GS, which went on sale last Friday, sold more than 1 million units in the first three days of launch.
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