As an example of component cost, the OMAP3530 can be had for $22 in quantities of 1,000 - just think what kind of price Nokia are paying for the lower spec 3430. The CPU and screen are going to be by far the most expensive components any phone, everything else (WiFi/BT/GPS/Accelerometer/DRAM/Flash/Battery) will be single digit dollars. As I say, I don't begrudge Nokia or Apple or anyone else a profit for their labours but when you cost up the components that goes into these devices, which are then sold by the million, it gets a little hard to consider the price they are sold at as anything but "fair".