Wirelessnorth.ca

ISupply has released the results of their tear down analysis of the new 3G iphone. Apparently the component and assembly costs of the device is $179. Forgetting for a second the hundreds of millions Apple likely has and will spend on the design, development and marketing of the device… that’s pretty cheap. So want to know what the things are made of? (they’re not just full of stars apparently)

So there you have the ingredients. Though I don’t think that just the list and a trusty ikea alen key is going to help you put one together.

Anyhow, here is the real kicker:

“At a hardware BOM and manufacturing cost of $173, the new iPhone is significantly less expensive to produce than the first-generation product, despite major improvements in the product’s functionality and unique usability, due to the addition of 3G communications,” said Dr. Jagdish Rebello, director and principal analyst for iSuppli. “The original 8Gbyte iPhone carried a cost of $226 after component price reductions, giving the new product a 23 percent hardware cost reduction due to component price declines.”

Imagine, for a second, a world where great warehouses in shenzhen churn out pre-designed Android devices (which would basically the same components) or devices with the newly-free S60 OS or cheap-ish windows mobile. Then imagine the churning out of such devices a year from now 23% cheaper and with a few more features, then 23% cheaper than that another year later… all hitting the shelves of Walmart, Canadacomputers or 7eleven at nominal markup.

This (thank you Moore’s law) is another reason why the next several years are going to be a very interesting time to be in mobile.