iPhone 5 prices of components

How could Apple make a cheap iPhone Mini? | ZDNet

+16 GB: $10 component price, $100 sales price increase
+48 GB: $30 component price, $200 sales price increase

It is no surprise competition for such market is strong...
But it is hard to make a better product

BlackBerry Z10 vs. Apple iPhone 5 (iPhone wins, but Z10 is at least comparable)