Apple makes 56% on iPhone!
p2pnet news | mobiles:- In January, “you’d have to be out of your gourd to pay that kind of money for something that’s basically whiz-bang with no more substance than other cheaper, comparable products,” wrote Lucas Mearian in Computerworld.
He was talking about the iPhone, and he went on:
Market research firm Isuppli Corp. today released a research report stating that the iPhone will generate more than a 50% gross margin for Apple – nothing unusual for them. That basically means that Apple is pocketing $250 for every iPhone it sells. Compare that with the average gross margin of 10% to 20% for handsets and you’ll see where Apple is really relying on fan loyalty to gouge.
Mearian, however, had it wrong.
According to Computerworld, once again quoting iSuppli, “Each 8GB iPhone sold by Apple Inc. puts $333 more in the till than the device cost to build”.
iSuppli calculated materials and manufacturing costs for a $600 8-gig iPhone came to $263.83, giving Apple a profit margin of nearly 56%.
But, the story allows, “The tear-down analysis only spells out what’s inside the iPhone, component prices and estimated cost to make; it doesn’t take into account research and development or marketing costs.”
Also See:
Computerworld – Why the iPhone is a ripoff, January 18, 2007
Computerworld – Apple’s iPhone profit margin greater than 50%, July 3, 2007
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July 4th, 2007 at 6:36 am
56% is really not that much pubs/bars work on a 75% mark up(take price of one beer/food – whole sale cost). (UK)
R&D will be a lot as well not to mention the obscenely expensive EDGE license(maybe not as much for manufacture depending on how much AT&T pay)