The new iPhone is expected to carry an initial hardware Bill Of Materials (BOM) and manufacturing cost of US$ 173, according to a preliminary “virtual teardown” analysis conducted by iSuppli Corp.
If correct, the second-generation iPhone could be even more profitable for Apple than either the original iPone or the iPod.
Dr Jagdish Rebello, director and principal analyst for iSuppli, said that at a hardware BOM and manufacturing cost of US$ 173, the new iPhone is significantly less expensive to produce than the first-generation product.
He said this was despite major improvements in the product’s functionality and unique usability, due to the addition of 3G communications.
“The original 8Gbyte iPhone carried a cost of US $226 after component price reductions, giving the new product a 23 per cent hardware cost reduction due to component price declines,” he said.
Last week, a survey revealed that nearly a quarter of US consumers questioned in a survey highlighted price as the main reason why they were not considering buying an Apple iPhone 3G.