T-Mobile Android based G1 phone costs just £93

Research firm iSuppli has it the G1 costs just $144 to build, where it’s selling for $179 in the states.

All the materials and components used just add up to a meagre amount, a lot lower than we would expect in terms of the profitability normally associated with handsets.

The HTC manufactured device, minus the software, research and development has the analysis worked out on the physical examination of the phone.

Although they admitted hadn’t yet taken apart the phone for a complete breakdown on all the components inside, which does include the processor and modem core designed by ARM.

iSuppli had factored in though the display, camera, the radio functions which included the HSDPA part of it all.

They went on to state it lacks the “wow factor” of other handsets such as the iPhone, which we concur.

What they do believe is that the integration with Google’s services, plus their apps could be a major advantage of the G1.

Let’s see if they re-evaluate the report with a more thorough investigation, but it’s interesting still to say the least. More can be read on the report here -http://www.isuppli.com/MarketWatchDetail.aspx?ID=309.

We’re just wondering, out of interest what the cost would have been if the G1 were to have run Windows Mobile instead and if a calculator could ever produce a figure that high.