Apple iPhone will cost $230 to make

The cost of manufacturing each 4GB Apple iPhone will cost $230 according to research by iSuppli and reported on over at the EETimes website. This could equate to over 50% gross margin for Apple Inc and Cingular Wireless. Great news for Apple and Cingular, but not being sure myself how such deals are cut, I would not draw any real conclusion from this. Do Apple get the majority of this profit, or is it shared equally with Cingular? Your guess is as good as mine.

The report goes on to say "iSuppli estimates that 14 music-enabled mobile phones with features that compete closely with the Apple iPhone already are shipping from manufacturers including Nokia, Motorola Inc., Samsung Electronics Co. Ltd. and LG.
Shipments of music-enabled mobile phones will rise to 618.1 million units in 2007, up 39.9 percent from 441.7 million units in 2006, iSuppli predicts. By 2010, shipments of such phones will increase to 1 billion units."

You can read the full report here.