Report: Newest iPhone model costs $179 to make

June 24, 2009

(AP) -- Research firm iSuppli says Apple Inc.'s latest iPhone costs just a few dollars more to make than the previous model.

That analysis comes despite the new iPhone 3GS having like a better camera and video-recording capabilities.

ISuppli said Wednesday that its breakdown of the 3GS indicates the smaller 16-gigabyte model costs $178.96, mostly for parts, including $24 for . ISuppli estimates manufacturing is $6.50 of that amount.

The new iPhone costs $199 or $299, depending on its storage capacity, when purchased with a new two-year service contract from AT&T Inc.

An earlier teardown by iSuppli estimated that the 8-gigabyte 3G cost $174.33 to build. At the time, it cost $199 with a new two-year contract. It now costs $99.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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