The company said the BlackBerry Storm costs about $203 to make, compared with the $173 it costs Apple to make an iPhone 3G. The most expensive part of the Storm is the $35 Qualcomm chip, which could make the Storm available in more countries eventually because it can use GSM and CDMA networks. The iPhone is currently only available for GSM networks.
Despite coming out to mixed reviews and shaky software, Verizon Wireless was able to sell 1 million Storms in about 72 days. While this is a good pace for nearly any phone, the iPhone 3G was able to hit that figure in its debut weekend, although it was available in more countries.
While the breakdown does not represent the full cost of the device because it doesn't include research, marketing, distribution, and other factors, it does give a good estimate on the margins of the devices. Additionally, those cost differences begin to add up when the shipment volumes increase. Verizon is the exclusive U.S. carrier of the Storm, and it sells the smartphone for $199 after a rebate and a two-year contract. AT&T is the exclusive carrier of the iPhone 3G, and it costs $199 with a new two-year contract.
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