T-Mobile's G1 mobile phone -- with its Google, Inc. (NASDAQ: GOOG) powered -- may have a bill of materials that's about 10% cheaper than Apple, Inc.'s (NASDAQ: AAPL) iPhone 3G, according to research firm iSuppli. No wonder it retails for only $179 with a two-year contract while the 8GB iPhone 3G sells for $199 with the same two-year contract.

Part of the difference may be in the memory of both units. While the iPhone 3G comes with 8GB of memory already installed, the T-Mobile G1 comes with a paltry 1GB memory card, which of course can be upgraded unlike the iPhone's memory capacity. The cost breakdowns: $144 for the G1 and $160 for the iPhone 3G. Even with the price break of a meaningless $20, can the G1 ever hope to compete with the iPhone's sales numbers?

Doubtful, at least in its current configuration. Apple's iPhone 3G surpassed the Motorola, Inc. (NYSE: MOT) RAZR to become the best-selling handset in the U.S. in this year's third quarter. The G1 is just now hitting the market as of late October. With the prices of the two units within $20 of each other, and with the iPhone's huge lead in being on the market, the G1 won't make much headway against iPhone sales. 2009 - and a second-generation G1 - could see renewed interest in T-Mobile's offering. Right now, it's all Apple.

When T-Mobile USA and Google, Inc. (NASDAQ: GOOG) announced the Google-powered G1 smartphone last week, little did the fourth-largest wireless provider in the U.S. know that it would have to turn customers away.

Anxious customers who want to sign up for the new phone when it's released on October 22nd are apparently getting this message on T-Mobile's website: "Sorry! Due to the overwhelming popularity of the new T-Mobile G1, upgrades are temporarily unavailable. Please try again later." This news is according to the Android Guys blog, which guesses that the Google G1 sold out in four days.

T-Mobile has neither confirmed nor denied that the Google G1 sold out, nor has it released initial sales figures for the still-unreleased smartphone. The G1 is a clear competitor to the Apple, Inc. (NASDAQ: AAPL) iPhone 3G and to the various BlackBerry and Windows Mobile smartphones. It's also poised to become a huge seller for T-Mobile as more and more touchscreen competitors try to steal some of Apple's thunder.