Apple"s second-generation iPhone is expected to carry an initial hardware Bill Of Materials (BOM) and manufacturing cost of US$173, according to a preliminary "virtual teardown" conducted by iSuppli. However, the market research firm noted that the teardown is a preliminary analysis. Once the 3G iPhone becomes available, iSuppli will perform an actual, detailed teardown of the new iPhone"s components and cost structure.
"At a hardware BOM and manufacturing cost of US$173, the new iPhone is significantly less expensive to produce than the first-generation product, despite major improvements in the product"s functionality and unique usability, due to the addition of 3G communications," said Dr. Jagdish Rebello, director and principal analyst for iSuppli.