While there are variations in the components and suppliers for individual products, iSuppli believes that the vendors and parts identified in its teardown likely are representative of all iPhone 3Gs now being shipped, excluding certain memory devices and other commodity parts that are available from multiple sources.

After iSuppli has completed an analysis of a larger sample of iPhones, we will issue further information to the public.

Infineon AG was the big winner in the key baseband section of the iPhone 3G torn down by iSuppli, contributing its HSDPA/WCDMA/EDGE chip that includes dual ARM926 and ARM7 microprocessor cores. Solely-sourced items include Infineon's baseband solution, RF transceiver and Global Positioning System (GPS) devices; Samsung Electronics Co. Ltd's applications processor integrated with Synchronous DRAM (SDRAM); Marvell Technology Group Ltd.'s WLAN device and Cambridge Silicon Radio's (CSR's) Bluetooth chip.

Multi-sourced items include Toshiba Corp.'s 8Gbyte NAND flash memory chip. Apple's other likely sources for this part include Samsung.

Design insights
Other observations made by iSuppli's analysis team include:

* The redesigned internals of the iPhone 3G include only one large PCB, instead of the two nested PCBs found in the 2G version. The iPhone 3G uses a 10-layer board, compared to the less-expensive six-layer PCBs commonly employed in mobile handsets.
* The battery is not soldered into the iPhone 3G as it is done in the 2G, making it more serviceable.
* Some chips have the Apple logo or are unmarked. Although iSuppli has been able to identify many of these parts and their true manufacturers by de-capping the chips and examining their dies, some devices remain unidentifiable at this time.

iPhone costs
Beyond the $174.33 BOM and manufacturing cost of the iPhone 3G, Apple is spending an estimated $50 on IP royalties per unit shipped. With the 8Gbyte version retail-priced at $199, and the estimated $300 subsidy paid by AT&T to Apple for each unit, Apple is selling the product at a price of $499, and spending $224.33 to produce each one. This gives Apple a BOM, manufacturing and royalty margin of 55 percent for each 8Gbyte iPhone 3G unit sold.