iPhone manufacturing cost estimated at $245.83...maybe

I think the subsidy he was referring to was for consumers, not Apple.

i.e. the iPhone would cost $700-$800 for a subscriber who's not extending their contract or ready for an "upgrade"

Hey Mobile Magazine, here's 250 bucks. Make me one!

You can even keep the change.

And software costs pennies to "manufacture" onto a CD.

WHO CARES.

If the phone is expensive as Cingular are not subsidizing then they probably won't be forcing monthly costs as they have not to recoup. If they knock of the Moto Q for $99 then they obviously want $100 a month to pay the phone off.

Best Mac video I've seen in years
http://www.youtube.com/watch?v=gHDMAy8qAcc

To me the initial cost of the iPhone is no big deal. I can always save up the money and purchase the phone when I have the money. What will ulimatly be the deciding factor for me will be the monthly cost. If I'm going to have to pay $100 a month then thats what will be hurting my wallet.

--Nick Young
http://keynote2keynote.blogspot.com

Erica,

While I like you have no Idea what the actual cost to manufacture Is I can tell you that in addition to the physical cost to manufacture they are going to assign an amount of their marketing budget, r&d as well as corp overhead ( you gotta pay the lawyers).

Secondly as to Sale price we do not know how much Cingular is paying Apple but we know it is enough that Apple is forgoing other significant sales channels for a very long time by tying themsels to Cingular. It is fair to assume that Cingular has made a signifiant commitment to Apple to support iPhone sales. The support will come in several forms Cash payments on a per unit basis will be part of it but I am sure they have minimum marketing expenditures as well. (or thinking out of the box Apple may require network enhancements)

It is safe to say with or without the list of parts that the gross margin on the iPhone will be substantial. Apple will not sacrifice gross margin and dilute their otherwise stellar earnings.

Please, Please, PLEASE make me a touch-screen iPod with 60-80GB Hard Drive!
I really want to use the multi-touchâ„¢ technology and I don't need a phone or a "breakthrough internet device" - I am into the MUSIC, and I don't want to wait any longer! I am begging you Mr. Jobs - make me an iPod!

"For all I know, they are pulling these numbers out of thin air " and #7,

If you read the iSuppli analysis, they clearly state that the estimates are based on the tear-down of many other devices sharing the same or similar components. Not thin air stuff:

"About iSuppli’s preliminary functional BoM estimate
iSuppli developed its preliminary functional BoM estimate based on an analysis of the capacity and features of the Apple iPhone, combined with information from materials from Apple, company sources and third-party publications. To further help determine the content of the iPhone, iSuppli leveraged the extensive knowledge of its Teardown Analysis service, which has dissected hundreds of pieces of electronic equipment, including music-enabled mobile phones, various models of the iPod and other Apple products"

http://www.trafalgar2.com/content/view/1634/111/

I want to add that manufacturing costs don't determine final cost.

please read this, which I found on the 37signals blog

"Legend has it that Pablo Picasso was sketching in the park when a bold woman approached him.

“It’s you — Picasso, the great artist! Oh, you must sketch my portrait! I insist.”

So Picasso agreed to sketch her. After studying her for a moment, he used a single pencil stroke to create her portrait. He handed the women his work of art.

“It’s perfect!” she gushed. “You managed to capture my essence with one stroke, in one moment. Thank you! How much do I owe you?”

“Five thousand dollars,” the artist replied.

“B-b-but, what?” the woman sputtered. “How could you want so much money for this picture? It only took you a second to draw it!”

To which Picasso responded, “Madame, it took me my entire life."