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[* black] So what is a package? You're looking at one.
[* black] This is a cross-section of the iPhone's ARM processor package. [http://www.ifixit.com/Misc/iphone_processor_crossection.jpg|Click here to see it in full, 2854x313 glory.]
-[* black] So what are you looking at? The side of a processor package. The processor itself is the center blue rectangle. The silver balls beneath it are solder balls.
+[* black] This is the side of a processor + RAM package. The processor itself is the center rectangle. The silver circles underneath it are solder balls.
[* black] The two rectangles above the processor are SDRAM dies. They are offset from each other to make room for the wirebonds, which you can't see in this shot.