BlackBerry Storm dissected, costs more than iPhone 3G
By Will Park on Thursday, January 29th, 2009 at 11:28 AM PST In Announcements, BlackBerry, Financial/Corporate News, Hottest Hardware, RIM (Research in Motion)
We’re not sure if it’s a good thing for the BlackBerry (NSDQ: RIMM) Storm that its parts (including assembly costs) ring up to a grand total of $203, trumping the iPhone 3G’s parts and manufacturing costs. iSuppli, famous for tearing down new handsets and assigning a dollar value to every single handset component, has found that the BlackBerry Storm burns through $203 worth of parts and labor before ever hitting a retail shelf.
The priciest component of the BlackBerry Storm is the $35 Qualcomm (NSDQ: QCOM) chipset that allows the Storm to hop from CDMA to GSM networks at will. RIM also included a more expensive camera module, adding
$13 to the Storm’s BOM (bill of materials), that bests the iPhone’s 2 megapixel shooter with a 3.2 megapixel auto-focus camera. The Storm sports some high-end hardware, but do the higher-priced components translate into a more satisfying user experience (buggy firmware aside)?
In comparison, the iPhone 3G costs $175 in parts and labor – a solid $53 less than it cost Apple (NSDQ: AAPL) to make the original iPhone. Considering that the BlackBerry Storm is RIM’s first-ever touchscreen smartphone, we can understand the handset’s high manufacturing costs. RIM’s second-generation touchscreen BlackBerry handset should hit market with a decidedly lower manufacturing price-tag.
[Via: BusinessWeek]



I think the cost does not matters much. The actual thing that matters is the features and services, and according to me BB wins here.