Apple iPhone costs just $174.33 to build

Jul 16 2008, 12:56am CDT | by Luigi Lugmayr

iSuppli analyzed the iPhone 3G now in detail the manufacturing cost after they published a Virtual Teardown of the iPhone 3G back in June. The results are almost the same. Apple has about $174.33 pure manufacturing costs on the iPhone 3G, which is around $50 less than for the original iPhone.

So even while providing more functionality (GPS, 3G) Apple still managed to lower the cost, which enabled them to offer the new low pricing without killing their margins.
As reported, Apple sold 1 million iPhone 3G phones in the first weekend.
More details on Apple Insider.

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Luigi Lugmayr
Luigi is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.