Manufacturing costs for the iPhone are likely to be much higher than comparable devices. This is partly because of the design of the product and partly because of the quality testing needed.
Apple has done a remarkable job of simplifying the external design of its products and in particular the iPhone and the iPad. The next step should be the simplification of the internal design. With an internal design as simple as the external design I am certain a significant portion of the manufacturing process can be robotized with us focused on higher level work.