How much do those GBs really add to the cost of an iPhone? I am not being snarky, is it a significant part of the overall cost?

Look at the price differences on the iPod touch or Nano line-up or SSD drives - RAM is the main thing leading to price differences there.

This is going to remain the case for the next few years - although I think eventually prices will fall below our demand for capacity (as has happened with computers - once performance is acceptable, prices fall).

Thanks JulesLt. I was looking for the actual cost of RAM in the iPhone. There is a $100 difference between the models, but does the RAM actually cost that much or is more of marketing thing.

Cost of 8 GB reduced NAND flash is minimal. Probably $10 saved vs 16 GB…

“Toshiba scored the biggest single design win in the 3G S, with its 16Gbyte Multilevel-Cell (MLC) NAND flash costing $24.”

http://www.cellular-news.com/story/38186.php

So, AT&T and Apple may choose to lose some significant margin on the 8GB 3GS, but how will they divvy up the hurt? And will it be worth it for the mkt share gain?

Sir Harry,

It’s more than memory and marketing. The 3GS has the fingerprint-resistant oleophobic screen and a 3 megapixel auto-focusing camera with video (vs. 2, fixed focus, no video).  The 3GS also has a faster processor and a longer battery life.

It’s more than memory and marketing. The 3GS has the fingerprint-resistant oleophobic screen and a 3 megapixel auto-focusing camera with video (vs. 2, fixed focus, no video).  The 3GS also has a faster processor and a longer battery life.

That doesn’t answer my question pricing where the only difference between two iPhones is RAM.

iPhone 3G3 16GB $199
iPhone 3GS 32GB $299

Is that $100 difference due to the price of RAM?

How much do those GBs really add to the cost of an iPhone?

I was looking for the actual cost of RAM in the iPhone. There is a $100 difference between the models,

Apologies. Didn’t realize you weren’t referencing the 8 GB Ram model. I posted based on the subject of this article.

Apologies. Didn’t realize you weren’t referencing the 8 GB Ram model. I posted based on the subject of this article.

No need to apologize, I should have been more clear, but thank you and accepted.

You all have a great weekend.

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