Published on 07/15/2008
The cat is out of the bag - the iPhone 3G retails for just $174.33 where pure manufacturing costs is concerned, much less than what it cost to build its predecessor which was less capable. That's from a study done by iSuppli. That price does not include shipping, selling it or even coming up with the software, but perhaps the inexpensive design is meant to allow Apple to establish its marketshare as early as possible where the iPhone's life is concerned. If you take into account the $50 amount in licenses for patents and other intellectual property factored into the price and an unsubsidized cost of $499 (assumed) for an 8GB model, Apple might end up earning up to $300 from AT&T for each customer in terms of subsidies.