T-Mobile G1, $144 to make, iPhone $160: which is better value?

The T-Mobile G1 is the first Google Android powered handset, and is a phone that centers on its Google software. The cell phone cost just $144 to manufacture, compared to the Apple iPhone at $160.

So the T-Mobile G1 costs 10 percent less to manufacture, but why is that and which handset offers the better value? The first major difference with the Apple iPhone is the 8GB internal hard drive that the standard iPhone 3G has, which the G1 does not have.

Both handsets have the usual Internet access, email, voice communications, music playback and camera. However iSuppli analyst Tina Teng has said that although the interface on the G1 is above the industry average, it lacks the wow factor that you get with the Apple iPhone.

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