iPhone 3G Could Cost Just $100

Portelligent thinks that this time Apple may pay as little as $100 for
the components, down from $220 for the original. The saving's made in
engineering advances and Apple's buying power: the extra 8GB in the
16GB version may cost as little as $20, but you'll pay $100 for it.
Article Link (Gizmodo)

iSuppli, an authority on taking electronics apart and figuring how much
it costs to build one, has just put preliminary price tag on the iPhone 3G of $173.
That's quite a bit higher from the $100 analysts were quoting earlier.
Because this is only a virtual teardown based on estimated parts and
not a real one based on looking at stuff, the guys at iSuppli could be
off by, say, $50. But based on their estimate of $173, the new 8GB
iPhone 3G is less than the original 8GB iPhone's cost of $226.

Article Link (Gizmodo)