iPhone 3G Costs Just $174.33

It seems like there isn’t going to be any end to the iPhone obsession. The folks at iSuppli have taken the time to count the dollars and cents with regards to the iPhone 3G. Based on their math, it seems that the (material and manufacturing) cost of the iPhone hardware will be $174.33 (more or less) for the 8GB model, which is about $53 less than their estimate of the original 8GB back in June last year. The savings came about mainly due to Apple using a single 10-layer circuit board over a pair of 6-layer boards. They also figure that Apple is paying about $50 in royalties for each iPhone made, which makes the grand total of $224.33. Pair that with the healthy AT&T subsidy, and Apple will be getting a rough margin of 55%.