The Cost of Making the 3G iPhone

With the 3G iPhone taking the mobile phone world by storm, a lot of stories have circulated about this popular device. One of the recent stories ion the 3G iPhone involves the actual cost of making one. According to Portelligent Inc., the raw cost of materials to build the 3G iPhone could be nearly half that of the original model.

Portelligent Inc., an Austin, Texas-based teardown specialist, claim that their tests show that the iPhone 3G could have a BOM as low as $100. Some experts say that Apple decided to cut the cost on the next generation iPhone to be able to extend its toehold in the massive mobile phone market.

Here's a statement from David Carey, the president of Portelligent,

Gen2 iPhone pricing is aggressive enough that it made me think Apple's really taking the gloves off on this one. 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.

The 3G iPhone have 3G and GPS chipsets that are expensive materials but Apple is saving on other components. For instance, the handset's display for the new device is about fifty percent cheaper because of engineering changes.

However, Portelligent’s conclusions are not final because the company didn’t actually have an actual iPhone 3G for their evaluation.

Well, this is certainly interesting because I thought that the 3G iPhone will be more expensive to make than the first model. Then again, there are no clear answers yet because the company admitted that they were unable to test the real thing. Perhaps they will get the chance when the 3G iPhone launches in July 11.

Experts are predicting that the 3G iPhone will even be more popular than the original version. The new phone is bring sold for only $199 so that may mean that Apple's profits may be down. However, the lower price and the anticipation for a faster iPhone means that the 3g version may sell more units than the original.

Apple is also bringing the 3G iPhone to numerous countries which means more units will be sold. The iPhone maker has announced agreements with a wide range of carriers across Asia, Europe and the U.S. On July 11, more than 20 countries will begin selling the 3G iPhone. Apple officials have said that before the year ends 50 carriers will provide the handset to mobile phone users through out the globe.

Well, I think mobile phone users appreciate that the new iPhone has a cheaper price tag. There is no doubt that the device has a great influence in the mobile phone industry. The cheaper iPhone has even encouraged Sprint to sell the Samsung Instinct for about $130. We'll see how things progress when the 3G iPhone hits the stores on July 11th.