A recent news report from FinancialWire stated that the new Apple (News - Alert) iPhone may cost the company as little as $100, an amount much less than the making price of the original iPhone. The report was based on a speculative analysis done by Portelligent (News - Alert), a technology intelligence firm dealing with wireless, personal, and consumer electronics.

 

According to David Carey, president of Portelligent, the observation about the low price of the iPhone (News - Alert) was based on the knowledge of the components of the new iPhone. Carey said that the bill of materials (BOM) of the components used in the new iPhone costs about $100. This, in contrast with the BOM of $170 of the original iPhone, means a big deal for Apple and its customers.

 

Apple recently introduced the new iPhone 3G, a combination of the iPhone with third generation (3G) networking features. According to Apple, the new iPhone is twice as capable as its original base model. The new iPhone also features a built-in GPS.

 

“Just one year after launching the iPhone, we’re launching the new iPhone 3G that is twice as fast at half the price,” said Steve Jobs (News - Alert), Apple’s CEO. “ iPhone 3G supports Microsoft Exchange ActiveSync right out of the box, runs the incredible third-party apps created with the iPhone SDK, and will be available in more than 70 countries around the world this year,” said Jobs.

 

Apple iPhone 3G uses a quadraband GSM and triband High Speed Downlink Packet Access (HSDPA) for enabling voice and data connectivity around the world. It supports Wireless Fidelity (Wi-Fi), 3G, and Enhanced Data rates for Global Evolution (EDGE); and it has the ability to automatically switch among them. The new iPhone distinguishes itself with its ability to perform multiple tasks with simultaneous voice and data communications.

 

Portelligent observed, “Although the 3G and GPS chipsets in the new model add to its cost, Apple is saving on other components. This is due to a learning curve and engineering changes.”

 

“AT&T (News - Alert) and the other carriers could be subsidizing the $199 sale price by $200, which means Apple may be charging its partners as much as $399 per phone,” said Gene Munster, managing director and senior research analyst at Piper Jaffray, an international middle-market investment bank and institutional securities firm, in a statement published at FinancialWire.