The cheapest model of Apple Inc.’s new 3G iPhone, which is about to go on sale for $199 in the U.S., thanks to the collaboration between Apple and Telecom firms, costs about $173 to make, according to an estimate by research firm iSuppli Corp.

Notwithstanding other costs, therefore from a basic 8GB phone Apple, Telcos and other players in the value chain will earn $26. This will be shared among them in different proportion. Is $26 will be good enough for a robust profit margin for these players?

Interestingly Verizone CEO Seidenberg has a different view. While describing Apple as a “great company”, Seidenberg rejects suggestion that the iPhone is about to become a mass-market handset because Apple has accepted telecom firms’ request to subsidize it.

“There goes the conspiracy again. You’re declaring them a winner before they’ve earned it on the field” –Seidenberg.