Below is an interactive chart showing the prices of components that go into an iPhone 4, Google Nexus One, Nokia N8, and a BlackBerry Torch. They all retail between $500-$600, but are in the realms of a third of that to produce, in terms of parts. No wonder RIM is the second most profitable company in the cell phone business after Apple. Their phones cost less to produce than the competition, yet sell for comparable retail prices.
Be patient - the embedded chart takes about ten seconds to load, but it is worth the wait.