iPhone 3GS costs Apple $179 to produce

iPhone 3GAccording to iSuppli, it would seem that Apple is actually saving some money on producing the new iPhone 3GS at $179 compared to the older iPhone EDGE which had a production cost of $226. Obviously this does not take into consideration the (probably) huge amount of costs they had for research and development.

However, even though the new iPhone 3GS has more built-in memory and more advanced components, it’s still cheaper to make, due to lots more units being produced and the price of components going down.

I’m still getting one!

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