GPhone 10 Percent Cheaper, Uglier Than iPhone
T-Mobile’s G1, the first smartphone based on Google’s (GOOG) Android operating system, really is as cheap as it looks. According to a new theoretical tear-down by research firm iSuppli, the G1 costs about 10 percent less to manufacture than Apple’s (AAPL) iPhone 3G.
Now, iSuppli’s estimated bill of materials for the G1 is based on component and materials costs alone. It doesn’t account for other expenses like research and development, software, shipping and distribution. It does, however, account for “wow factor,” of which the G1 apparently has a paucity. Though Tina Teng, iSuppli senior analyst of wireless communications, described the G1′s interface as better than average, she said it “still has a gap to close with Apple’s interface” and “lacks the wow factor of some of its slicker competitors.”