Deutsche Bank analyst Chris Whitmore this week announced that he expects Apple’s manufacturing margins on the new iPhone 4S to reflect roughly 70% that of the iPhone 4.

According to Whitmore’s claims, the 16GB model iPhone 4S is expected to have a manufacturing cost of just $170, while the 32GB model is expected to carry a manufacturing cost of $220. The newly introduced 8GB iPhone 4 model, on the other hand, is expected to weigh in with a production cost of $140.

“This suggests manufacturing margins on the iPhone 4S are 71-73% (vs. ~38% for iPod touch) and should support attractive corporate margins for AAPL for multiple quarters,” he said to the company’s investors in a note released on Monday.

Regarding the price of the handset and accompanying monthly tariffs, Whitmore said, “We expect customers who do the math to opt for the iPhone,” adding that, “in addition, those who don’t do the math will likely reach for the lower upfront acquisition cost of the 4S compared vs. these Droids.”

iPhone 4S received over 1 Million pre-orders in its first 24 hours of availability, with AT&T announcing that it can account for a further 200,000 through its own systems. Featuring the company’s A5 processor, 8-megapixel camera and Siri voice assistant, iPhone 4S is currently expected to go on sale at retail outlets across the globe, this Friday (October 14).

[via AppleInsider]