iSuppli, who are experts at taking apart gadgets and figuring how much they actually cost to manufacture, just ran some numbers on the new iPhone 3G and estimated, the thing costs $173 to physically produce.

Here's the breakdown for parts:

That's significantly cheaper than the $226 the original iPhone was estimated to cost, and frankly that pisses me off.

Look, if a 2-Mega-Pixel camera only costs $7, would it kill them to upgrade to a nicer model? And if they're only spending $4 on batteries, aren't you curious how much battery life you could get for a whole ten dollars?

What happened to value for your money?

Via