ISupply estimates manufacturing costs for Apple’s new high-speed iPhone totaled $173, compared with $265 for the original iPhone, released one year ago for about $500 with no subsidy. After what it called “component price reductions,” the initial iPhone carried a cost of $226.

“At … $173, the new iPhone is significantly less expensive to produce than the first-generation product, despite major improvements in the product’s functionality and unique usability, due to the addition of 3G communications,” said Dr. Jagdish Rebello, principal analyst for iSuppli.

The figures don’t include other costs, including software development, shipping and distribution, and packaging, iSuppli said.

With Apple now profiting even more per iPhone sold, it’s obvious why they chose to market their phone through only a select few exclusive service providers around the world. By sinking their teeth into a telecommunications giant like AT&T, Apple can make windfall profits, while still not alienating their buyers by making the outward price of the device much higher.

“I’m seeing an excitement among mobile developers that I’ve never seen before,” said Sam Altman, chief executive and co-founder of Mountain View-based Loopt, a location-based social networking service. “People who said they’d never start a mobile (applications) company because they didn’t want to rely on the carriers are now starting companies focused only on the iPhone.”

Apple recently provided the tools engineers need to create applications for its popular mobile device. The Cupertino company said some 250,000 iPhone software development kits have been downloaded. The App Store Web site, where applications will be sold or given away, is expected to launch soon, perhaps July 11 when the faster next-generation iPhone goes on sale.

Apple could be creating a billion-dollar industry built around the iPhone, said Piper Jaffray analyst Gene Munster. In a recent note to investors, Munster wrote that the App Store could create a $1 billion-plus iPhone ecosystem by the end of 2009.

Like much recent iPhone “news”, it wouldn’t be implausible to speculate that this originated from Apple’s marketing division.