The new Verizon iPhone 4 costs 9% less for Apple to build than the AT&T iPhone 4, according to a teardown analysis report by IHS iSuppli. The bill of materials, or the total cost of the phone's components, costs about $171.35 for the Verizon phone. The AT&T phone's bill of materials costs $187.51. The total production cost for the Verizon iPhone 4 is $178.45. So why is it cheaper?