Any negative comments about Apple’s forthcoming iPhone have focused on its proprietary nature and hefty price tag. At $499 and $599 its price points match those of Sony’s PlayStation 3.

ISuppli, the chip research firm, took apart a PS3 recently and discovered the sum cost of its materials and manufacturing was $805.85 for the 20Gb model and $840.35 for the 60Gb version – representing a $306.85 subsidy of the cheaper version.

In contrast, iSuppli has not yet got his hands on the iPhone but has estimated Apple is charging around double what it will cost to manufacture.

It says the 4Gb version will cost $245.83 for parts and manufacturing and the 8Gb version $280.83. The most expensive component will be its 3.5-inch touch screen at $33.50.

This represents the usual healthy profit margin for Apple and buyers can expect no relief from Cingular, with iSuppli predicting the operator will not offer it at a subsidised price.

ISuppli’s analysis is at variance with the opinion of Nomura analyst Richard Windsor, who sees the iPhone as a crunched down Mac Mini with added cell phone parts that should cost around $800.

The iPhone will be available by mid-year in the US and later elsewhere. Mobile phone users in Europe and Asia, who can’t wait, will be able to buy an iPhone lookalike as early as next month from LG.

Today it unveiled the Prada-branded KE-850, a touchscreen phone with a 2-megapixel camera that will sell for 600 euros in Europe.

January 18th, 2007 in Telecommunications | Permalink