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iSuppli Prices the G1

The High Tech Computer Corp. (HTC) (Taiwan: 2498) G1, which T-Mobile US Inc. sells for $179, has an estimated materials cost of nearly $150, according to a new report from IHS iSuppli

The new report from device and components supply chain researchers says that the estimated bill of materials (BOM) for the first Google (Nasdaq: GOOG) Android phone comes to $143.89. T-Mobile US Inc. has never said exactly how much it subsidizes the HTC phone, but the material cost gives some clue, especially since the figure does not include the costs of software, R&D, manufacturing, and accessories. (See Slideshow: Switching On Android.)

iSuppli says that the main component cost is the ARM Ltd. baseband chip at $28.49, or 19.8 percent of the G1's total BOM. The next most costly section of the G1 is the display at $19.67, or 13.7 percent of the BOM. After that, the camera and the 3G radio chip are the next most expensive items.

In contrast, iSuppli estimates that an 8GB 3G iPhone BOM stands at $173. The research firm estimates, however, that iPhone costs could fall to $148 in 2009 as the costs of the components drop. (See Apple Peels Away iPhone Costs.)

The costs of the G1 are also likely to fall as silicon costs fall. There may also be more competition to try to lower baseline costs for Android phones as more vendors start to use the platform. (See Samsung Passes Motorola in US.) — Dan Jones, Site Editor, Unstrung

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