The new iPhone’s low-price secrecy may be opened as market researcher iSuppli claiming that it costs just $173 to manufacture.

With a price tag of $199, Apple astonished everyone when it launched the new 3rd Gen iPhone earlier this month. Apple’s iPhone equivalent products from other companies cost much more. For instance, Touch Diamond from HTC has the price tag of US$785 while Nokia N96 smartphone will be available in US$ 855 as Nokia estimates.
All three handsets will be available in market soon.

According to iSuppli, there are two reasons behind the low price of this new iPhone. The first is that Apple will be subsidized by the mobile phone service provider around US$300 per unit and the other reason is the low cost of materials that is used in the handset.

iSuppli stated that Apple nicely managed to choose the components for the new 3G iPhone that it costs less to manufacture than the previous old version, with some considerable improvements. The old version of iPhone cost $266 to manufacture and it without 3G and GPS.

iSuppli estimates that 8G bytes of NAND flash memory storage is the most expensive component in the 3G iPhone that costs around $22.80 while the touchscreen with US$20 is the second most expensive component.

The other included components in the phone add up to $164 and another $ 9 for the assembling of the device, thus total comes to $173 according to iSuppli estimates.

The world’s largest contract electronics maker ,Taiwan based Hon Hai Precision Industry is manufacturing the new iPhone in china.

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