The BlackBerry Storm may not sell for more than an Apple iPhone, but it costs more to manufacture, according to market research firm iSuppli.
The BlackBerry Storm 9530 carries a combined materials and manufacturing cost of $202.89, according to iSuppli’s Teardown Analysis Service. The cost to built an 8GB iPhone 3G is $174.
Verizon, the exclusive carrier for the BlackBerry Storm, sells the smartphone for $249.99 before a $50 rebate. AT&T sells Apple’s iPhone 3G for $199, and both carriers require a two-year contract.
So is BlackBerry maker Research in Motion taking a bath on the device? Maybe not.
“The amount of money that it costs to build a phone has nothing to do with the amount of money the handset vendor makes because there are subsidies involved,” said Avi Greengart of Current Analysis. “So it is possible that there are heavier-than-usual subsidies being applied to this phone. It certainly wouldn’t surprise me.”
RIM’s Clickable Screen
iSuppli said the Storm matches up with the iPhone 3G in attributes and functionality. Both phones combine wireless voice communications with other features, including Internet access, e-mail, built-in GPS, messaging and an integrated camera. Both phones offer a touchscreen.
“The touchscreen and the resulting user interface represent the focal point of the Storm’s design from the user’s point of view, as it is with the iPhone,” said Andrew Rassweiler, teardown services manager for iSuppli. “However, RIM has added a special differentiating feature from the iPhone: The ‘clickable’ screen.”
According to Rassweiler, the one thing that most touchscreens lack is the feedback mechanism users get from a conventional keyboard that clicks when a key is depressed, letting you know your choice has been registered.
“Clearly,” he said, “RIM felt this was lacking and added an actual physical button that allows users to feel and hear a click when they make a selection…