Google Phone Bill of Material Only $144 - Cheaper than iPhone

Research firm iSuppli, reports that the Google Phone Bill of material reaches $143.89. That compares with $174.33 for Apple's iPhone 3G which Apple sells for $199.

The Android-based wireless handset was virtually torn down by iSuppli based on its Mobile Handset Cost Model (MHCM) analysis which includes only the component and material cost of the HTC G1 and excludes any associated expenses (R&D, software etc).

iSuppli said that the phone's motherboard which consists of an ARM11 microprocessor and a ARM7 which is used for comms at USD 28.49

The 3.2-inch touchscreen display accounts for $19.67 while the 3-megapixel camera costs only $12.13 with the rest of the components costing less than $10.

iSuppli expects Android to be a major player in the mobile market, one year after it was introduced and that the real breakthrough will come after more open source applications are released for the platform.

“Each day there are about five or six new G1 applications for download,” Tina Teng, senior analyst, wireless communications, for iSuppli, said. “Eventually the G1 will have its own software community, much like the Linux applications in the wired world or the Sun OS has for workstations. This will produce a rich suite of free software for a variety of purposes that anyone can access.”

T-Mobile sells the phone for $179 in the US, which means that HTC is pocketing at least $35 per phone - a 24.3 percent margin. You cannot buy it alone in the UK, instead, T-Mobile offers it for £40 per month either on Flext 40 or Combi 35.

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