It is important to remember that this figure is simply to buy a bag of iPhone 4 bits. It does not include, R&D, Patent Licensing, Software / OS, Manufacturing, Shipping or Packaging.
The most expensive component in the iPhone 4 is unsurprisingly the 960×640 pixel touch sensitive LCD display assembly from LG. That comes in at around $28.50.
After that the Apple A4 SoC (the iPhone 4′s brain) is estimated to cost around $10.75.
$188 is in line with the cost of the iPhone 3GS, which was rumoured to have a Bill of Materials of $179 when it was introduced. The “BOM” for the 3GS has now dropped to around $134.
Do you think the iPhone 4 is too expensive now you know how much its bits cost? Let us know your view in the comments.