iSuppli strikes again
ABC News writes another silly piece on what the iPhone 3G “really costs” based on iSuppli’s assinine estimates; which came out to $173 per iPhone.
First of all… (as Gruber points out) iSuppli doesn’t even have one to disassemble, to be sure of exactly the components inside the device.
Second of all, most of the price estimates ASSUME volume discounts on parts, and that assumption (while maybe within the realm of reality) is imagineered.
Third, their estimates don’t include (like ABC News mentioned) accessories included in the box, shipping, packaging, or software development (arguably the MOST important part of the device’s success) and ALSO don’t include Marketing, Support, ASSEMBLY, and very importantly, Research and Development (for hardware, software, online infrastructure, etc)
iSuppli has been doing this for long enough to know that the only way to get their name out there is essentially flame-baiting. It’s just sad to see ABC buy it hook-line and sinker.