It seems like its not only the computer manufacturers who are moving towards the low-cost dimension. Apple's iPhone 3G was designed for cost reduction instead of cutting-edge features. This was according to iSuppli which dissected and analyzed the new iPhone in order to identify component suppliers, as well as to determine preliminary part and system costs. iSuppli's cost estimate for the new device was significantly less than the first-generation, eight-gigabyte iPhone in June 2007. For the iPhone 3G, the cost estimate is $174.33 compared to that of the 2G which is peg at $227.
An iSuppli's analyst believes that Apple aimed for a more cost-effective design for the 3G iPhone compared to the 2G version in order to lower the retail price, which will allow the company to seed adoption and to capture maximum market share.
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