According to iSuppli who specialise in dismantling electronic hardware to identify components and costs have now estimated just how much it costs for materials used on a 16GB iPhone 3G S reports appleinsider.
Basically for all materials on the new iPhone 3G S, iSuppli reckon it costs $172.46 and then add on manufacturing costs of $6.50 giving a grand total pf $178.96.
One should remember though these figures do not include the likes of shipping, distribution, packaging, royalty fees, any miscellaneous accessories, and the cost to develop the iPhone OS 3.0 software.