A teardown analysis from Portelligent found the new iPhone is significantly cheaper than the original iPhone. DailyTech reports the iPhone 3G could have a bill of materials as low as $100 - that's $70 less than the estimated bill of materials when Apple launched its first iPhone.
According to teardown analysis from Portelligent Inc., the new iPhone 3G could have a bill of materials as low as $100. This reduction in the cost to build the device takes into account the increased prices for the addition of a 3G chipset and a GPS chip.
“Gen2 iPhone pricing is aggressive enough that it made me think Apple's really taking the gloves off on this one," noted Portelligent president David Carey. "They are probably not as worried about iPhone hardware profits as they are about getting a piece of the action on service revenues and getting more Macs in homes and offices all around the globe.”
This aggressive pricing is taking some money out of Apple’s coffers on hardware sales. However, Apple will likely make up the losses on hardware sales in revenues for software sold via the App Store. DailyTech reported that the App Store could be a billion dollar business for Apple by 2009.