IHS Inc. this week said Apple Inc.’s new iPhone 4S 16GB SKU costs an estimated $188 to build in a materials breakdown of the new device.

The build of materials includes Apple’s A5 Dual-Core CPU at $15.00, 16GB NAND Flash memory by Hynix Semiconductor Inc. at $19.20, and a wireless subsystem by Avago Techonologies at $23.54, which allows the iPhone 4S to function between CDMA and GSM networks in 2G or 3G.

Apple this week said it sold 4 million iPhone 4S units at launch in the first three days of sale to set a new demand record for the device.

The sales figure beat the previous record held by the iPhone 4 at 1.7 million units sold in three days.

The iPhone 4S began sale Oct. 14.

The device will be sold in more than 22 countries by the end of the month.

Apple in Oct. reported it sold 17.07 million iPhones in Q4, below the 20 million units estimated by analysts, which concluded buyers held out for the release of the iPhone 4S.

Fourth quarter profit increased to $6.62 billion to increase from $4.31 billion, a 54 percent increase from one year prior.

The iPhone 4S includes the A5 Dual-Core CPU, 8MP camera, 1080p HD video recording functionality, iOS 5, and a new voice command protocol called Suri.

The iPhone utilizes the iOS operating system used in iPod Touch and iPad 2 products.

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