BlackBerry Storm found pricier to build than Apple’s iPhone 3G

Thu, Jan 29th, 2009

An insistence on a physical feedback screen and dual-network support has pushed the cost of making Research in Motion's BlackBerry Storm significantly above that of current-generation iPhones, hinting that Verizon may be paying more to rival AT&T in touchscreen phones.

Research house iSuppli has conducted a teardown which puts the price of assembling RIM's first touchscreen BlackBerry at $202.89, not including marketing, shipping and other costs involved in getting the phone to customers.

The expenses result in a phone that, in some circumstances, actually costs more for its American carrier Verizon to sell than it does to produce. While the normal retail price is just short of $250, the online pricing puts the phone at $200.

As such, the phone may cost more to subsidize than its most direct challenger at AT&T, Apple's iPhone 3G. A teardown conducted by iSuppli in July revealed that the iPhone cost a more modest $174.33 just days after its launch -- a figure that may have decreased over recent months as each individual part gets less expensive to build, and $28.56 less than the BlackBerry.

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