3G iPhone Costs Only $100 to Manufacture?

We suspected that the iPhone 3G did cost a lot less to make, hence the lower price point (along with subsidies), but analysts at Portelligent are estimating that it could cost as little as $100 to manufacture, and if that was true, it could surprise many. This could very well be true: Apple has a very strong buying power, especially in businesses like Flash Memory, where people say that “they are the market”. Electronics companies continually cost-reduce their designs, but someone will still drop a lot of money to get it. It is rumored that carriers could pay as much as $400 for it. I know other phone makers who have sweet dreams over margins like these.