Production cost

Making 4GB iPhone costs about $200. To produce 8GB version, components will cost about $220.
So, Apple gets about $300 selling each 4GB iPhone and about $380 selling 8GB version.
But iPhone uses over 200 patents and it potential is not in the hardware, but in software.
I think that the most valuable thing in iPhone is OS X Mobile.

Software

iPhone is powered by OS X Mobile, there are many applications:

  • SMS Messaging - similar to iChat
  • Photos - synchronization with iPhoto or PC’s picture folder, gives user possibility of image manipulation by MultiTouch
  • Camera - takes pictures
  • YouTube - lets viewing videos from YouTube
  • Maps - Google Maps integrations
  • Calculator
  • Clock
  • Notes
  • Stocks
  • Weather

There is also quite much software created by non-Apple programmers.

Stress test

Guys from PCWorld have made stress tests on iPhone.
Test results:

  • Glass covering the screen is extremely resistant to scratches - people from PCWorld were trying to scratch it, but they didn’t made it!
  • Drop test on the carpet - survived
  • Drop test on the linoleum - survived
  • Drop test on the side walk - survived

After so brutal tests, the only iPhone injury was scratched metal edge!