'EE Times': $199 iPhone still a money maker
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'EE Times': $199 iPhone still a money maker

This is according to Portelligent of Austin, Texas, a company that conducted a teardown analysis of the first handset. The first phone had a bill of materials estimated at $170 at launch, but the iPhone 3G could have a BOM as low as $100 when it debuts July 11, said David Carey, president of Portelligent, a division of TechInsights, the publisher of EE Times. Also, the cost cut is strategic for Apple as its seeks to extend its reach in the cellular market. A

"Gen2 iPhone pricing is aggressive enough that it made me think Apple's really taking the gloves off on this one," said Carey. "They are probably not as worried about iPhone hardware profits as they are about getting a piece of the action on service revenues and getting more Macs in homes and offices all around the globe," he added.

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