Report: iPhone Costs Less Than BlackBerry Storm To Make

If smartphones were judged on component pricing, Apple’s iPhone would best RIM’s BlackBerry Storm. The iPhone 3G costs $174 to make, versus $203 for the Storm offered from Verizon Wireless, according to a new report.

The data from iSuppli suggests carrier Verizon Wireless is greatly subsidizing the $200 touch-screen BlackBerry. AT&T, the exclusive U.S. AT&T has indicated subsidizing the iPhone 3G cost it $450 million in the fourth quarter.

The manufacturing cost difference appears to hinge on component choices, including transmission technology.

Verizon’s decision to offer CDMA and GSM versions of 3G meant the addition of a $35 Qualcomm processor. By contrast, Apple uses only a GSM version of 3G.

While the iPhone is often viewed as the graphic superior to many rival smartphones, the iSuppli report said the Storm includes a 3.2-megapixel autofocusing camera that tacks on $13 to the handset’s manufacturing price. Apple, on the other hand, chose a 2-megapixel fixed-focus version, the report said.

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Although the Storm costs more to manufacture, its choice of components give the handset a broader reach. While the iPhone is limited in the U.S. to AT&T and Canada’s Rogers, the new BlackBerry can be offered by more carriers, according to the research firm.

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