For one, advertised components are not always in the actual phone. Two, licensing fees are probably not paid, given that they are ~7$ for a 3G handset. Still,

For one, advertised components are not always in the actual phone. Two, licensing fees are probably not paid, given that they are ~7$ for a 3G handset. Still, $4 is undoable. Cheapest Spreadtrum 2G SOC with WiFi/BT/Sim holder/camera will go over that amount.