Though hardware costs for the iPhone 4 have risen slightly, Apple is still
expected to make a strong profit on the handset.

Analyst firm iSuppli said its most recent teardown assessment placed the cost
of the 16GB iPhone 4 hardware components at $187.51. Last year's iPhone3G S
model carried an estimated bill of materials (BOM) cost of $170.80.

Of the four iPhone models, the iPhone 3G carried the smallest BOM costs with
$166.31. The original iPhone was the most expensive, carrying a $217.73 cost.

Analysts believe the costs will be close enough that the company will secure
strong profits on the handset.

"Just as it did with the iPad, Apple has thrown away the electronics playbook
with the iPhone 4, reaching new heights in terms of industrial design,
electronics integration and user interface," said iSuppli principal teardown
analyst Kevin Keller.

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