Teardown research - please read (especially the end)
I took the liberty of researching the component costs of iPhone 4 for you.
Post includes - Total price, Features we might see in the next iPod Touch, the cellular/unnecessary-for-the-touch items, flash memory/possibilities, the link to the teardown, and an outro.
In total - $187.50
Design (enclosure, hardware, metals, plastics, etc., not screen/glass) - $10.80
Glass - $10.00 (back? I don't know)
512mb of RAM - not listed
Display - $28.50
A4 chip - $10.70
5mp back camera - $9.75
VGA front camera - $1.00
Gyroscope - $2.60
3GS 3.2mp camera - $9.55 (note: technology has improved, so the cost is probably less now, taken from the 3GS teardown)
Total - $73.35
(what I beleive to be) all things phone and cellular
double data rate - $2.70
GSM/Edge transceiver - $2.33
GPS Chip - $1.75
Compass - $.70
Miscellaneous Connectivity components - $.80
Radio Frequency baseband - $11.72
Miscellaneous Radio Frequency Components - $8.25
In total - $28.25 (25 cents off from the display.)
Now on to flash memory. Using math I derived what the possible costs of different increments would be, using the 16gb price from the teardown.
8gb - $13.50
16gb - $27.00
32gb - $54.00
64gb - $108.00
128gb - $216.00
If anyone is interested - here is the link to the information
http://www.isuppli.com/Teardowns-Ma...Materials-of-187-51-According-to-iSuppli.aspx
Please use these facts in your arguments and try to stay away from building on what you want/believe, and build on these facts.