Teardown puts iPhone 4 hardware cost at $187

The hardware for Apple's 16GB iPhone 4 costs $187.51

Though hardware costs for the iPhone 4 have risen slightly, Apple is still expected to make a strong profit on the handset.

Analyst firm iSuppli said its most recent teardown assessment placed the cost of the 16GB iPhone 4 hardware components at $187.51. Last year's iPhone3G S model carried an estimated bill of materials (BOM) cost of $170.80.

Of the four iPhone models, the iPhone 3G carried the smallest BOM costs with $166.31. The original iPhone was the most expensive, carrying a $217.73 cost.

Analysts believe the costs will be close enough that the company will secure strong profits on the handset.

"Just as it did with the iPad, Apple has thrown away the electronics playbook with the iPhone 4, reaching new heights in terms of industrial design, electronics integration and user interface," said iSuppli principal teardown analyst Kevin Keller.

"With the iPhone maintaining its existing pricing, Apple will be able to maintain the prodigious margins that have allowed it to build up a colossal cash reserve."

The most expensive component in the 16GB model is Apple's new Retina touchscreen display. Analysts estimate that each screen costs the company about $28.50, just over 15 per cent of total hardware costs. Following closely is the 16GB of Flash memory at $27.

Other costs include $13.80 for SDRAM, $11.72 for baseband antenna hardware and $10.75 for the handset's CPU.