iSuppli: iPhone 3G is $53 cheaper

iSuppli has published the most complete bill of materials for the iPhone 3G revealed so far.

iSuppli now says the device costs just $174.33 to manufacture - that's $53 less than the original device cost to make, though that the cost doesn't include development, research, marketing or software development costs.


"iSuppli believes Apple aimed for a more cost-effective design for the 3G iPhone compared to the 2G, in order to lower the retail price," says principal analyst Andrew Rassweller, "which will allow the company to seed adoption and to capture maximum market share now - while the company still has buzz and a perceived differentiation relative to its competitors."

The researchers also confirmed the inclusion of a component which should be able to support proper music streaming over Bluetooth, if only Apple were to enable this within the iPhone's software.




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