iSuppli Estimates iPhone 3G S BOM Cost Around $179

Not long after the Apple latest 3G S iPhone being launched, some may curious to figure out what cost it takes up to come out with this powerful gadget. A recent BOM (Bill of Material) cost analysis by iSuppli disclosed that the cost to fabricate a 3G S iPhone is estimated to be $178.96, for a 16GB version, which is slightly more expensive than its predecessor 3G at $174.33 for 8GB version.

Out of the total estimated amount, Toshiba NAND flash ROM was identified to be one of the most expensive components, with cost price around $24 for 16GB and $46 for 32GB capacity. Besides, Samsung ARM Cortex processor has been upgraded from previously 412MHz to 600MHz that contributed to the slight increase to new cost of $14.46. Other expensive components include both the Touch Screen and 3.5-inch 16Megapixel display Module that occupy significant $35 out of the total BOM cost. Not much change on the Infineon Baseband HSDPA/EDGE chip at around $13, the new 3G S employs an integrated Bluetooth, Wi-Fi and Nike Transceiver wireless module as well as some new chips such as magnetometer (from AKM Semiconductor), accelerometer (from ST Microelectronics) and power management chip (from Dialog Semiconductor) that contribute to the cost increase.

Despite a slight cost increase that may cut down its overall margin, the performance boost in terms of faster processing power, bigger storage space and enhanced features are believed to be able to push more volume sales into consumer market space.