Part of the price difference will be the cost of shipping and handling, customer service, warranties, etc, but I think it is reasonable to claim that at least $200 will remain after factoring in those. People do buy these phones, so there must be some $200 of value in an iPhone that is not attributable to its hardware. People will have different views on where that value is, but IMO, it is not unreasonable to assume half of it is in the iPhone UI.