Bloomberg Businessweek writes that Apple’s 16 GB iPhone 4, which retails for $599 off-contract or $199 on-contract, costs approximately $188 to manufacture. The report comes as a result of an iSuppli teardown that analyzed the inner workings of the new mobile device. The most expensive part is — unsurprisingly — the Retina display, which iSuppli estimates at $28.50 at wholesale. Apple’s A4 processor, which is manufactured by Samsung, purportedly carries a price tag of $10.75. Both Apple and Samsung declined comment when contacted by Bloomberg BW. The $188 estimate is in line with previous iterations of the iPhone which typically have cost between $175 and $190 to manufacture.
UDPATE: Changed article title from “iSuppli: iPhone 4 costs $188 to manufacture” to “iSuppli: iPhone 4 components cost $188.” The $188 figure does not include labor and other miscellaneous costs that would be included in manufacturing; it is for the components only.
Image sourced from iFixit.