iSuppli estimates that the G1 is made with $143.89 worth in hardware costs. iSuppli has done a virtual teardown of the T-mobile G1 and come of with a Bill-on-Materials (BOM) required to construct the handset. It looks like it would be more worth it to just go out and but the phone rather than build it yourself.
The Mobile Handset Cost Model (MHCM) provides a detailed analysis of present expenses to build the hardware of the handset , this does not take into account the software and research and development costs. iSuppli however has not done an physical hardware teardown of the G1 to determine actual costs.
Senior Analyst for iSuppli, Tina Teng said, “The G1’s differentiation resides in its use of the Android operating system, which has won praise for its ease of use, but whose major advantage is its integration with Google Internet services and its capability to accommodate the flood of free applications that are becoming available.”
Most of the cost is contributed to the baseband of the G1, costing $28.49, which I 19.8 percent of the total cost. The second most costly item inside the G1 is the 3.2-inch LCD touch sensitive HVGA resolution screen. It comes as no surprise that the camera comes in at number 3 costing $12.13 or 8.4 percent of the total cost. Next they listed the Radio Frequency/Power Amplifier portion, which costs $9.84 or 6.8 percent of the total BOM. The Radio Frequency/ Power Amplifier is the portion responsible for receiving the high-speed 3.5G network connection. All together the parts of the G1 cost $143.89, which is not bad considering the cost of the phone without a 2-year agreement.