If you’re wondering how Apple can sell the new 3G iPhone for a price tag of just $199 (for the 8-GB model), it could be because it only costs $173 in hardware bill of materials (BOM) and manufacturing costs. ChannelWeb (crn.com) have a great teardown article on the upcoming Apple 3G iPhone.

From the article:

Here are some of the BOM cost breakdowns: 8-GB NAND Flash Memory: $22.80 2-Megapixel camera module: $7.00 Improved touch screen: $20.00 WLAN chipset: $4.00 Battery: $4.00 GPS: $3.60 Motion Sensor / Accelerometer: $2.00 HSDPA Digital Baseband: $15.00 Application Processor: $13.50 -RF Transceiver: $4.25 Display: $20.00 64-Mbit NOR Flash Memory, 32-Mbit PSRAM: $1.89.

Considering the overall teardown analysis of multiple products, iSuppli estimates that Apple’s iPod and iPhone products are typically priced about 50 percent more than their BOM and manufacturing costs. With an estimated subsidy of $300 and a price tag of $199, the new iPhone will give Apple an even higher BOM/manufacturing margin.

http://www.crn.com/networking/208800834

photo: http://www.ifixit.com/ from http://www.appleinsider.com/