The good guys at iSuppli have figured out the Bill of Materials cost for the T-Mobile G1 and place it at approximately $143.89. They used a virtual teardown method which is presumably easier than a physical teardown (which they've yet to do) and the overall price takes no account for software, research & development, manufacturing, and accessories costs.
With the $143.89 estimate of the G1, the $179.99 price under a new 2-year contract seems extremely reasonable. Those who paid more to get it out of contract may feel the burn but hey, who ever said carriers were there to help you.
What do you think? Anyone surprised by the estimate?