Apple IPhone 4 Parts Cost About $188

Apple's iPhone 4 wireless handset includes components that cost as little as $187.51, according to market research firm iSuppli.

Materials and parts for Apple's iPhone include a 3.5-inch LCD screen that Apple calls a "retina display." As the smartphone's most expensive component, it costs $28.50 and may have been made by LG Display, iSuppli says. The iPhone 4 sells for $199 and $299. The estimate doesn't include costs for items such as labor, shipping, advertising, software development, or patent licensing. ISuppli analyzed a 16-gigabyte version of the iPhone 4. As with the iPad, Apple used an internally designed A4 processor that was made by Samsung Electronics and costs an estimated $10.75 A component new to the iPhone is a gyroscope chip designed to detect how the phone moves in three dimensions and to make playing games seem more realistic. ISuppli said Geneva-based STMicroelectronics supplied the gyroscope chip at an estimated cost of $2.60, as well as an accelerometer chip used in previous iPhone versions, which has an estimated cost of 65¢.