iPhone 3GS Costs Apple How Much?

What’s bigger news than Steve Jobs getting back to work at Apple? How about the costs associated with manufacturing an iPhone 3GS? According to iSuppli, iPhone 3GS only costs $179 to build, which is by the way very close to what iPhone 3G used to cost. So it’s no wonder Apple can offer a better phone without taking away too much from its bottom line. Everybody knows that top gadget manufacturers get more cost efficient over time with their operations. We should also keep in mind that the cost of electronic parts are always dropping, which is the main reason why Apple still can offer its phone for a fairly low price. But did Apple make the right decision by not making drastic changes to its design? Here is what a top analyst at iSuppli thinks:

By leveraging this commonality to optimize materials costs, and taking advantage of price erosion in the electronic component marketplace, Apple can provide a higher-performing product with more memory and features at only a slightly higher materials and manufacturing cost.

So it seems Apple was looking out for all of us when it decided not to improve upon iPhone 3G’s overall design. It would have cost more money to manufacture an iPhone with a brand new design, and the last thing Apple wants to do in these tough times is increase prices on its customers. And if it’s not broken, why fix it.

I have got to say I was a bit disappointed when Apple decided not to make major design improvements with iPhone 3GS. The latest generation iPhone was well-designed and had many strengths, but it had its weaknesses too. And lets not kid ourselves. The total cost of ownership for iPhone 3GS is way more than the $199 we pay up front. So I would’ve had no trouble paying a bit more for an iPhone with a brand new design. Will Apple come up with a whole new design for iPhone 4.0? Most likely. But nothing’s certain, so we will have to wait and see.