In all, the latest numbers are similar to what we've seen for previous iPhones, and iSuppli believes this is because Apple is targeting the same budget. The 3GS was estimated to cost $179 in materials, but considering features like the upgraded screen, the new A4 processor ($10.75), a gyroscope ($2.60) and other additions, the iPhone 4's extra $8.5 seems perfectly reasonable.
At retail, the iPhone 4 costs $199 (16GB) and $299 (32GB) when paired with a two-year data plan from AT&T, or $499 and $599 for unsubsidized units. Steve Jobs has called it the most successful product launch in Apple's history, with 1.7 million units shipped in three days. By comparison, the company sold 1 million 3GS' in the same timeframe.