Research firm iSuppli estimates the bill-of-materials of the T-Mobile G1 Google Android phone is $143.89 - about $30 less than Apple's iPhone.
The G1's priciest component is reportedly the "baseband," which costs $28.49 and couples an ARM11 multimedia processor with an ARM7 chip for modem functions. Next in line are the 3.2" 320x480 display ($19.67), the three-megapixel camera ($12.13), and the radio frequency/power amplifier component ($9.84). These figures only cover the hardware, though, so costs are probably higher once you throw in R&D, manufacturing, marketing, and so on.
iSuppli carried out a physical teardown of Apple's new iPhone 3G a few months back, and according to AppleInsider, the research firm found that the base model cost $174.33 to produce. The iPhone does have more built-in memory and a fancier touch screen, although the G1 packs a full QWERTY keyboard. Right now, T-Mobile charges $179.99 for a G1 with a two-year contract, while AT&T offers a similar arrangement with the 8GB iPhone 3G for $199.