July 16, 2008

iPhone 3G costs $174.33; only manufacturing costs

by yogesh

After doing the dissection it has been concluded that the 3G iPhone totals only to $174.33 as manufacturing costs. This figure is much lesser than what it cost to build the original iPhone. This price however, does not include shipping, selling it or even software. Taking into account the $50 for licenses for patents and other intellectual property included into the price and an unsubsidized cost of $499 (presumed) for a 8GB model, Apple can profit to the tune of up to $300 from AT&T for each customer in terms of subsidies.
Source