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MacRumors has a report today on a tear-down of the Verizon iPhone 4 carried out by research firm IHS iSuppli. According to the report , the materials used to make the phone cost approximately $171.35, roughly 9 percent less than those of the original iPhone 4. According to MacRumors, some of the reduction in cost is simply due to components costing less now, but it says that Apple has also made some design alterations that have lowered the overall price. For example, the use of the MDM6600 world-mode baseband chip from Qualcomm, which has integrated GPS circuitry, meant that Apple didnt need to use the Broadcom GPS chip that it used in the GSM iPhone 4. The Wi-Fi combo chip module from Murata has also been revised, with the new version being smaller than the original one. MacRumors points out that the estimated cost of $171.35 is based purely on the cost of materials and components, with the cost of manufacturing, product development, sales and so on, being extra on top.
Source: Apple Reduces Build Cost of CDMA iPhone With Design Tweaks - Mac Rumors