…According to market research firm iSuppli, which has done a tear-down analysis of the Q, it 
costs Motorola about $158 to build the phone. That includes components and assembly but excludes other expenses such as marketing, distribution, and licensing fees to Microsoft, which makes the phone’s Windows Mobile operating system.
The Q is sold by Verizon Wireless, the joint venture of Verizon and Vodafone, at a heavily subsidized $199 with a two-year service contract, and $349 with a one year contract. Typically, the mobile phone service provider absorbs some of the cost of subsidizing a handset or other wireless equipment.
The Q’s single most expensive component, says iSuppli analyst Andrew Rassweiler, is the LCD display. He says the cost is $25, although it’s unclear what company makes the display. "Whoever made it didn’t want to be identified," Rassweiler says.
Sources of other parts of the Q are clear. Intel has two parts in the phone, a $19 XScale microprocessor and a flash memory chip. The XScale chip is produced by the unit of Intel that is being acquired by Marvell Technology (MRVL). Wireless News: Unmaking Motorola’s Q