A device teardown by analyst firm iSuppli has revealed that Research In Motion’s (RIM) Storm – the first BlackBerry touchscreen – is more expensive to produce than Apple’s iPhone 3G, and may mark the first time that the Canadian handset vendor has used Qualcomm chips. iSuppli found that the BlackBerry Storm 9530 carries a combined materials and manufacturing cost of US$202.89, compared to an earlier estimate of US$174.33 for an 8GB iPhone 3G, which is considered a major rival. The firm notes that Verizon Wireless is selling the Storm device in the US for US$249.99 with a US$50 rebate, bringing the balance to US$199.99, the same selling price point as the iPhone, which is offered by rival operator AT&T. However, iSuppli adds that, as operators sell devices at subsidised pricing, the actual price and materials/manufacturing margin is difficult to determine.

The major difference between the two devices, the analyst firm says, is the Storm’s ‘clickable’ touchscreen. “Clearly, RIM felt this was lacking and added an actual physical button that allows users to feel and hear a click when they make a selection on the display,” said Andrew Rassweiler, principal analyst, teardown services manager, at iSuppli. Storm is also compatible with more air interface technologies, another reason behind its increased production costs. Meanwhile, the use of the Qualcomm MSM7600 baseband processor represents the first time iSuppli has detected a Qualcomm chip in a RIM product. According to iSuppli, at an estimated price of US$34.82, the MSM7600 accounts for 17.2 percent of the Storm’s total component cost.