Why Is Apple’s 3G iPhone So Much Cheaper?

When the 3G iPhone was announced by Steve Jobs earlier this month, everyone was ooh-ing and aah-ing about it’s price. Compared to the first generation iPhone which was released last year, it is way cheaper.

However, many people did not take into account the US$300 per set subsidy by telco carriers. They also did not take into account the data plan that they are forced to subscribe to for two long years but these costs are an entirely different story although.

InfoWorld.com has a report by iSuppli, a market researcher, on why it cost less to make the 3G iPhone [US$173] than the 2G iPhone [US$226]. We are talking about the device only. In Cantonese, we call that the “vegetarian set”. They, of course, are not taking into account the research and development cost.

iSuppli plans to take apart a 3G iPhone when it is finally shipped to better determine the cost of each component that makes up the 3G iPhone, the brand and its manufacturer. it would be very interesting to see how much it actually cost to make an iPhone.

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