Experts suggest that the new iPhone 3G is much cheaper to make than the original iPhone. This corresponds to Apples “not more than $199″ pricing strategy.
Specialist from Portelligent, Texas-based firm has told that the materials in the new iPhone could cost as low as $100 compared to $170 for first gen iPhone.
“Apple’s really taking the gloves off on this one,” Carey told EETimes, reporting that although the 3G and GPS chips in the iPhone 3G add to the cost, but the price of the display has halved thanks to engineering changes.

“If these numbers are true,” says Yankee Group analyst Carl Howe, “the iPhone 3G could end up being the most profitable product Apple makes.”
Thanks: PocketLint
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