News
iSuppli: iPhone to generate nearly 50% margin
Apple and Cingular will see a nearly 50 percent gross margin on each iPhone sold, giving the companies “a hefty profit, as well as plenty of room for future price cuts,” according to a preliminary Bill of Materials (BoM) estimate by iSuppli.
“iSuppli estimates the 4GB version of the Apple iPhone will carry a $229.85 hardware BoM and manufacturing cost and a $245.83 total expense, yielding a 49.3 percent margin on each unit sold at the $499 retail price,” said Andrew Rassweiler, teardown services manager and senior analyst for iSuppli. “Meanwhile, the 8GB Apple iPhone will sport a $264.85 hardware cost and a $280.83 total expense, amounting to a 46.9 percent margin at the $599 retail price.”
Share This Article & Win an iTunes Gift Card. Next: Microsoft CEO claims Zune market share, laughs at iPhone
Comments
If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods or accessories, or if you sell or market iPod products or services, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators.
Recent News
- Apple launches Reserve and Pick Up retail service
- Apple patent points to simplified data sharing
- iPodweek coming shortly, still time to register
- Apple rolling out updated iTunes LP/Extras files
- Apple seeking new iPhone security manager
- Vers launches open-front Shellcases for iPod, iPhone
- iPhone developer accused of stealing phone numbers
- Quirky intros Beamer case for iPhone 3G, 3GS
- Apple’s Jobs named ‘CEO of the decade’
- Intel responds on iPhone sync issues
Recent Reviews
- Elexa Consumer Products iBlink
- Bose SoundDock 10
- Shure SE115m+ Sound Isolating Headset
- Apple Remote (2009)
- Kensington Travel Battery Pack and Charger for iPhone
- Tapulous Metallica Revenge
- Electronic Arts NBA Live by EA Sports
- Edifier iF500 Luna5 Encore
- Griffin iTrip for iPod + iPhone With iTrip Controller App
- XtremeMac Luna Voyager
Recent Articles
- iPhone Gems: Asphalt 5 and Doom Classic
- Ask iLounge 10-30-09
- Instant Expert: Secrets & Features of Apple TV 3.0
- Ask iLounge 10-23-09
- iPhone Gems: Copy Cat, Derek Jeter Baseball, I Am T-Pain, MotionX GPS Drive, Pang + Real Racing GTI
- iPhone Gems: 2XL ATV Offroad, Adrenaline Golf Online + Iron Fist Boxing 3rd Strike
- iPhone Gems: BombLink, Rock Band + Tap Tap Revenge 3
- Ask iLounge 10-16-09
- iPhone Gems: Global Eater, NPR News, Pocket Tunes Radio, scanR + vTuner Radio
- iPhone Gems: Itsy Bitsy Spider and Little Red Hen Childrens’ Books
21
These are deceptive figures. I think the phone will be worth the price tag. Heck, I’m gunna get me one! You get yourself some cheap M$ stuff and be lame. I’m getting the iPhone cause it’s cool and innovative.
Posted by chad_l on January 19, 2007 at 10:05 AM (PDT)
22
<BRENT>.... English is my 3rd language… I speak 5…. How many do you speak??!! (aside from Trash, of course) If the iPhone is soooo reasonable in price, this article woukd not be all over the internet in the first place.
You insisting on others not to express their own opinions is what I call true whining.
BTW… I also missed a word in the former post and you did not even point it out… I’m not so sure your English skill is really up there….
Posted by DJ on January 20, 2007 at 10:42 PM (PDT)
23
Those margins are standard for the industry actually. I work for a major Music hardward company that makes MIDI controllers, speakers and audio interfaces and we won’t release aporduct unless we can make 59% margin. If it gets as low as 55% and we can’t cut anymore corners, we cancel the project! So Apples 49% really isn’t that much when you conider R&D, paying the employees, markeintg, etc.
Posted by tim r on January 21, 2007 at 4:55 AM (PDT)
Page 2 of 2 pages < 1 2