Apple's iPhone 3G S: What's the Real Cost?

The iPhone 3G S cost breakdown comes courtesy of iSuppli, an electronics research firm based in California, said the phone is $20 cheaper to make than its current retail price.

The iSuppli team tore apart the iPhone 3G S and calculated that it costs nearly $179 to make. Meanwhile, the new phone retails for $199.

iSuppli estimated the value of each of its components, taking into account both the costs of the raw materials and the associated manufacturing expenses.

The iPhone 3G S costs only about $5 more to make than its predecessor, the iPhone 3G (8GB version), iSuppli said.

Here is a breakdown of the iPhone 3G S, piece by piece:

1. Flash memory (Toshiba): $24.00

2. Display module (Toshiba): $19.25

3. Touch screen assembly (Toshiba): $16.00

4. Application processor (Samsung): $14.46

5. Baseband (Infineon): $13.00