The Apple iPhone 4 components cost Apple just £125, according to the latest analysis from iSuppli's Teardown Analysis.

The Bill Of Materials (BOM) figure includes the cost of all parts that make up the iPhone 4 16GB , but does not include manufacturing costs, software, licensing and marketing figures. The BOM of the iPhone 4 is only slightly higher than that of the iPhone 3GS and will ensure Apple reap high profits.

When you consider the iPhone 4 sells for  £499 there has to be a significant profit margin for every mobile sold even when including all the other costs. 

The single most expensive component featured is the LCD display which is expected because its one of the most advanced mobile screens in the world. The screen alone weights in at £19 with the second highest value component being the flash memory, which comes in at £18.

Other noticeable costs include SD ram at £9, A4 Applications processor at £7, capacitive touch-screen with reinforced glass at £6.70  and the 5 mega-pixel camera costs £6.50. The battery in the iPhone 4 costs Apple just £3.80.