We've already seen what's going on inside the iPhone 3GS, now courtesy of iSuppli we know roughly how much it all costs. The analysts have been picking through the iPhone 3GS' components and have deemed that Apple's handset costs $178.96 to produce in its 16GB form.
Full breakdown after the cut
That's made up of $172.46 in hardware costs, and a further $6.50 in manufacturing expense. Significant components include the flash memory, produced by Toshiba and priced at $24 for 16GB, and the display, with the 3.5-inch LCD estimated at $19.25. The ARM SoC application processor is pegged at $14.46.
The similarity between the iPhone 3GS and its predecessor, the iPhone 3G, suggests - iSuppli posit - that Apple have been able to counter the more expensive components new to the smartphone by taking advantage of lower general prices on legacy parts and buying in bulk. They've also taken advantage of combined hardware, such as the Broadcom Bluetooth/FM/WLAN chip which replaces two separate components in the iPhone 3G.