Why is the new 3G iPhone cheap? Its build cost

You may be really happy that the new 3G iPhone is going to have a much cheaper price and also a lot better features, but how can Apple give us more technology for a cheaper price in under a year. The market researcher iSuppli might have found the answer to that question.

Researcher iSuppli have said that the new iPhone 3G costs just $173 to make, and that would then add up to why we have been seeing a $199 price tag (£99 pound in the UK). This price point has given Apple and their iPhone a good selling point, other brands with similar features have a much higher price and will then find it harder to compete.

PCWorld say the HTC Touch Diamond will cost $785 for the home market and the Nokia N96 smartphone will cost around $855, these prices are a lot higher than the next generation iPhones. From a consumer standpoint, why pay more when you do not have too and all three handsets will be on shelves around the same time.

The reason iSuppli give for the cheap price of iPhone 3G is the materials used to create the phone, and the fact that phone service providers have to subsidize the handsets by giving Apple around $300 per iPhone. This does not mean that the iPhone 3G is not as good quality, just that Apple was very smart when choosing components to make the new 3G iPhone.

It’s an amazing achievement by Apple, to think that the first generation iPhone cost $226 to make and did not include GPS or 3G and it cost a lot more money. Apple may have been aided a little with some technology getting cheaper like the memory, but still, all the brands can still design their phones cheaper.

Are you worried about what materials make up your phone?