iSuppli: New iPhone BOM Cost

"At a hardware BOM and manufacturing cost of $173, the new iPhone is significantly less expensive to produce than the first-generation product, despite major improvements in the product's functionality and unique usability, due to the addition of 3G communications... The original 8Gbyte iPhone carried a cost of $226 after component price reductions, giving the new product a 23 percent hardware cost reduction due to component price declines."

Read the full article at iSuppli's Preliminary Study.  The image shows the BOM from the iSuppli article. Click on the image for larger version.