Posted by: macintoshsisters | June 25, 2008

Apple squeezes iPhone 3G costs down to $173

New ‘virtual tear-down’ gives Apple plenty of room for profit, says iSuppli

The cost of manufacturing Apple Inc.’s next-generation iPhone 3G will be 23% lower than the cost of manufacturing 2007’s original model, according to a research firm noted for tearing apart electronics.

According to estimates by iSuppli Corp., Apple’s new iPhone 3G will come with a bill of materials (BOM) and manufacturing cost of $173, nearly one-fourth less than the $226 the company spent on the first-generation 8GB iPhone, which debuted almost a year ago.

“The new iPhone is significantly less expensive to produce than the first-generation product, despite major improvements in functionality and unique usability, due to the addition of 3G communications,” said Jagdish Rebello, an analyst at iSuppli, in a statement issued yesterday.

FULL article at ComputerWorld

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