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.
[iSuppli via Android Community]
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