Another most expensive part is the A4 processor, custom-designed by Apple and manufactured by Samsung, which costs about $10.75. The addition of a gyroscope made by STMicro has also increased the price with another $2.60. The final cost is also influenced by the front camera, but the amount is not known.

Other parts present in the iPhone 4 are the Wi-Fi chipsets, Broadcom Bluetooth, TriQuint and Skyworks cellular hardware. The glass and touchscreen are supposed to be made by Wintek or TPK-Balda, while Infineon has been replaced by Broadcom.

The estimated cost does not include research, marketing, shipping or other elements beyond the constitutive parts and assembly. All these suggest that the actual cost needed to bring the phone to a store and still generate profit would be considerably higher. The company normally has a price of $599 for the 16GB model, while the price of the 32GB version is $699 without any contract on AT&T’s network.

The growth of cost for the parts could be an explanation for the lack of an upgrade in capacity for the iPhone. Unlike in the past it has doubled the storage space.

The Droid is the first Android phone to use Android 2.0 with a new web browser and exchange mail, as well as other improvements. It also sports the beta version of Google Maps Navigation, a first turn-by-turn application from Google using voice commands to choose driving directions and overlaying the chosen routes on 3D satellite views or displaying an on-screen indicator glowing green, yellow, or red based on the current traffic conditions along the route.

One of the technically most advanced Android phones, the Droid is based on a 600 MHz ARM Cortex A8 Processor and sports a 3.7-inch capacitive touchscreen, with 854×480 resolution and a 5-megapixel camera with dual-LED flash to capture great looking night shots, auto focus and image stabilization. A 16GB microSDHC card for a large amount of storage, a QWERTY slider, 13.7-millimeter thick, a 3.5mm headphone jack, GPS, Wi-Fi and EVDO Rev. A-based 3G are other features of the Droid.

Verizon is supposed to leave Android 2.0 unchanged and to allow Android Market as being the main application portal. Amazon MP3 is meant to provide music downloads. Deep integration of Facebook and Visual Voice Mail service are also provided.

Verizon’s intention is to stop the iPhone’s ascension and therefore the Droid’s price was cut to $200 with at least $70 per month in data and voice plans and with a $100 mail-in rebate at retail. The device can be shipped to stores and online on November 6th.