As is customary for all new tech reases for those interested, research firm iSuppli have stripped down the new 16GB iPhone 3GS to analyse it’s organs. Their results estimate that the meat and bones of the new model cost $172.46 with an additional $6.50 in manufacturing costs. A grand total of $178.96

These cost estimates do not include software, research and development, distribution, and patent royalty costs. Consequently, Apple’s true costs in making each device are considerably higher than the figure cited. As a result Apple sell the iPhone SIM free at price points hundreds of dollars above the manufacturing costs. Wireless carriers in turn offer subsidies to customers in exchange for signing multi-year contracts, bringing the final handset cost to the consumer back down to lower price points, such as the $199 price for the 16 GB iPhone 3GS in the U.S. on AT&T.

It turns out therefore that as far as tech for your buck is concerned the £185 UK price tag isn’t as exuberant as initially thought considering the current exchange rate.