iPhone 3GS?

To add to the pondering here, in 2009 according to reports at the time, it cost $178 to make the iPhone 3GS.

It has to be far cheaper to make them now.  I'd guess it is well under $100.  Going by Moore's law, halving the price twice given the 3 years would be under $50.

What if they start selling the 3GS without a contract, for pre-paid type phones.  They might be able to sell it for $99 and still make a hefty profit.  Update it so it works in China, and they might sell a billion of them.