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G1 Google Phone Costly To Develop

Posted on: Tuesday, 11 November 2008, 15:50 CST

Research firm iSuppli said the Google phone is selling for $179 in the United States and costs $144 for the components and materials.

The T-Mobile G1, made by Taiwan's HTC, has a touch screen and full keyboard.  It also comes equipped with popular Google applications such as search, maps and mail.  It is considered the most likely contender of Apple's iPhone.

The company iSuppli said its "bill-of-materials" estimate was based on a cost model rather than a physical examination of the phone.  This estimate did not include costs for software, research and development, manufacturing or accessories.

On Tuesday iSuppli said the G1 contained a multimedia microprocessor and modem core designed by Britain's ARM, but has not yet conducted a physical breakdown to determine whose components are inside the phone.

According to the company, the G1 was well above the industry average in terms of ease of use, but still had a gap to close with the iPhone's user interface. 

It was also determined that the phone's industrial design and finish lacked the "wow factor" that the iPhone and other mobile devices have applied so well.

"The G1's major advantage is its integration with Google Internet services and its capability to accommodate the flood of free applications that are becoming available," iSuppli's senior wireless communications analyst Tina Teng said in a statement.

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Source: redOrbit Staff & Wire Reports

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