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Apple iPhone 4

Research firm iSuppli said the cost of materials for the iPhone 4 totaled $187.51. That compares with $170.80 for the 3GS. The estimates don't include manufacturing, software, marketing and other costs.

Apple's 16-gigabyte iPhone retails for $600 without a plan, or $200 with a two-year contract from AT&T.

The company said the higher-resolution touch screen display accounts for the priciest part of the iPhone 4, costing $28.50, or around 15 percent of the product's total bill of materials. Its speedy A4 processor, meanwhile, cost $10.75, while the flash memory, which has been in short supply, costs $27.

"With the iPhone maintaining its existing pricing, Apple will be able to maintain the prodigious margins that have allowed it to build up its colossal cash reserve," said Kevin Keller, an analyst at iSuppli.

Apple has consistently posted high margins, in part, due to the fevered demand for its devices. Earlier this week, the company said it sold 1.7 million iPhones in the first three days of its release, making it the most successful product launch in the its history.