50% profit margin for Apple on iPhones
Sunday, January 21, 2007 by e
iSuppli Thursday revealed analysis of component prices for the production of the iPhone leaving Apple Inc a fifty precent profit margin.
The price analysis shows that a 4-gigabyte iPhone costs about $246 to make. The 4GB phone has been priced to begin selling at $499. The larger storage version of the iPhone will have roughly the same profit margin.
With that sort of margin on the device I expect Apple to be able to cut the price after the initial release while at the same time releasing more robust versions of the phone with greater memory capacity and improved camera specs as well as (hopefully) 3G support.
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The price analysis shows that a 4-gigabyte iPhone costs about $246 to make. The 4GB phone has been priced to begin selling at $499. The larger storage version of the iPhone will have roughly the same profit margin.
With that sort of margin on the device I expect Apple to be able to cut the price after the initial release while at the same time releasing more robust versions of the phone with greater memory capacity and improved camera specs as well as (hopefully) 3G support.
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