iSuppli: iPhone to generate nearly 50% margin | iLounge News

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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.”

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Comments

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)

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