New break downs have arisen regarding the manufacturer’s costs of the HTC G1, the first handset to come out sporting the new Google Android OS. Of course who are we going to compare it to? Our (now) old friend the Apple iPhone 3G.

The iPhone 3G 8GB made quite a splash with the announcement of the retail price and also the manufacturer’s costs which were estimated to be around the $173 USD mark. Some were a bit confused because after all calculations it appears that Apple was possibly losing money on each unit sold. However, the recent news that the iPhone is now outselling a former mobile power house, the Motorola RAZR series, has quieted some of the critics in regards to the Apple marketing strategy.

However, there is a new smartphone in town and it is lowering it’s cost too. In comparisons to the approximate iPhone price tag of $173, the G1 is ringing up around $143.89 according to the iSuppli market research firm. The main difference between the two being the on board memory which Apple reportedly pays $23 for per unit. The HTC G1 is of course forgoing that internal memory and is investing more money in the device’s baseband chip. The combination of the ARM11 microprocessor and the ARM& core gives the G1 a strong base for multimedia and modem functions which should come in handy for running the slick new Android.

From the parts evaluation the Apple iPhone takes the cake. The multi-touch capability and also amazing capacitive touchscreen are two major features that the G1 is lacking. In terms of raw power the iPhone appears to come out on top. The extra $30 seems to make the difference giving the iPhone that edge.

However this may not be a major roadblock for the G1 as most of its appeal is banking on the flexibility and promise of the Google Android OS. This is the reason why we here got so excited and why internet buzz was at an all time maximum. Although the new OS has yet to prove itself we believe that the possibility of the Android OS will attract more smartphone developers and open up the system to limitless possibilities.