iPhone Only Costs $250 to Make; Rest of Price is Fanboy Tax

So you thought the iPhone's insanely high price tag is due to all the fancy technology inside? Not so, my friend. That touchscreen that everyone is popping tents over only costs $33.50, with the touchscreen controller adding a mere $1.15 to the price. In fact, Apple stands to make a healthy 50% profit on both versions of the iPhone sold, with the costs of the 4- and 8-gig models only running $245.83 and $280.83, respectively.

All that profit and we're still forced to sign our lives away to Cingular AT&T for 2 years for the privilege of buying this phone. If it's not being subsidized, why the hell are we still forced to sign a contract? Weak, very weak.

Check the full cost breakdown of both iPhone models after the jump.

iPhone Only Costs $250 to Make; Rest of Price is Fanboy Tax

Apple to see near 50% gross margin on each iPhone sale [Apple Insider]