According to a new iSuppli report, each unit of the upcoming iPhone 3G only costs $173 USD to assemble and manufacture, meaning Apple could be making upwards of $500 USD profit on each phone sold.
The research group said they "virtually" tore down the phone, based on internal experts in the cellphone and wireless technology fields and were able to estimate the costs of each part and finally ... [ read the full article ]
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Reguardless of weither or not the iPhone costs $173 to make, its no where near the $500 charge.
I know companies have to make money but it doesn't cost them near what they charge.
At the very highest, considering how many iPhones are made, its probably $250 per unit, that is counting every expense paid to the respective places (Manufacturing, licensing fees etc.) and they charge you $500.
I don't see the point of an iPhone, if you really need internet on your phone get a blackberry...
But Landor is right. The "Bill of Material" cost doesn't cover everything. It only costs about $1 to make a CD, but the record companies still manage to loose money at $15 retail. (Of course, the record companies are not as well run as Apple...)