EE Times speculates that the iPhone 3G could cost Apple a whopping $100 to build. Also, that extra $100 you're going to pay for the 16GB iPhone 3G, they speculate the 16GB flash drive could cost Apple just $20 more.
When you're forking over your hard earned cash to AT&T or Apple on July 11, remember, you're paying a subsidized price. Apple could be charging AT&T up to double of the stated iPhone 3G price.
EE Times cites volume discounts, engineering refinements and the lower price of components for the manufacturing price drop.
Expect spy shots of Apple executives swimming in large pools of money around the holidays.
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Links:
[1] http://www.maclife.com/user/rbaldwin
[2] http://www.eetimes.com/rss/showArticle.jhtml?articleID=208403011&cid=RSSfeed_eetimes_newsRSS
[3] http://www.maclife.com/article/iphone_for_199_not_so_fast_says_at_t
[4] http://www.maclife.com/article/iphone_3g
[5] http://www.maclife.com/article/cheap_iphones_overseas_wwdc_tidbits_isight_hd_and_more