IPHONE-COMPARISON-B-6001 A 16 GB iPhone 5 that sells for $199 with a two-year con*tract and $649 with*out a con*tract con*tains mate*ri*als that are worth about $168, accord*ing to one indus*try ana*lyst. UBM Tech Insights crunched the num*bers and found the com*po*nents add up to $167.50 for the 16 GB model. For com*par*i*son's sake, the 16 GB mod*els of the iPhone 4S and iPhone 4 have mate*r*i*al costs of $132.50 and $112, respec*tive*ly, accord*ing to the researcher. When they say material cost they mean only outside not inc. processor and everything else right? Because 300% profit isnt reasonbale.