Apple iPhone to Generate 50 Percent Margin
Apple iPhone to Generate 50 Percent Margin, According to iSuppli*s Preliminary Analysis
January 18, 2007
Each Apple iPhone sold will generate nearly a 50 percent gross margin for Apple Inc. and partner Cingular Wireless, giving the companies a hefty profit, as well as plenty of room for future price cuts, according to a preliminary functional Bill of Materials (BoM) estimate created by iSuppli Corp.
iSuppli estimates the 4Gbyte version of the Apple iPhone will carry a $229.85 hardware BoM and manufacturing cost and a $245.83 total expense, yielding a 50.7 percent margin on each unit sold at the $499 retail price, said Andrew Rassweiler, teardown services manager and senior analyst for iSuppli.
Meanwhile, the 8...
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January 18, 2007
Each Apple iPhone sold will generate nearly a 50 percent gross margin for Apple Inc. and partner Cingular Wireless, giving the companies a hefty profit, as well as plenty of room for future price cuts, according to a preliminary functional Bill of Materials (BoM) estimate created by iSuppli Corp.
iSuppli estimates the 4Gbyte version of the Apple iPhone will carry a $229.85 hardware BoM and manufacturing cost and a $245.83 total expense, yielding a 50.7 percent margin on each unit sold at the $499 retail price, said Andrew Rassweiler, teardown services manager and senior analyst for iSuppli.
Meanwhile, the 8...
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The iSupply breakdown is an estimate - there's no official spec sheet, and a lot of the details as to the final design & parts of the phone are still secret and/or undetermined. A 50% proft margin is still likely, but we can't be sure that it will actually be that high.
But you're right - early adopters are suckers. 🙄
But you're right - early adopters are suckers. 🙄
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Lets not forget the R&D that goes into new products. hard to put a cost on that.
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Yes, because combining the components of an Ipod and a cell phone require heavy R&D.
I'm not saying R&D doesn't play a factor in the price, but I do not believe the R&D costs are as high as some believe.
I'm not saying R&D doesn't play a factor in the price, but I do not believe the R&D costs are as high as some believe.
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Yeah, because working on a phone for over 2 years before it is put out doesn't cost a thing. 🙄
Not saying I'd ever buy one, but it certainly is impressive.
Not saying I'd ever buy one, but it certainly is impressive.
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The cost of integrating iTunes into a phone device is nothing, but since Apple hasn't ever made phones before, there's got to be huge development costs into creating a phone system they like. True, they're using GSM, which is an established technology, but that doesn't mean they'll instantly be able to slap a phone onto/into any other device without some experimentation.
I'd say the real costs are in software development: How the freakin' heck does one slim down an operating system that isn't actually an operating system, but rather a very nice GUI for UNIX*? That, to me, is the real accomplishment.
Then there's the 200 some patents that this phone involves, and the various new permutations of existing technologies that were develope...
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I'd say the real costs are in software development: How the freakin' heck does one slim down an operating system that isn't actually an operating system, but rather a very nice GUI for UNIX*? That, to me, is the real accomplishment.
Then there's the 200 some patents that this phone involves, and the various new permutations of existing technologies that were develope...
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Well, let's see.. how many people did they hire for this project? (they were hiring GSM/Edge engineers) and these aren't midlevel techs.. how much did they spend to set up supply lines, lawyers and accountants, sales people, buyers, testers, designers, how much spent negotiating with vendors for these parts, infrastructure to pull this off, profit margin(they are a business not a charity) etc etc...
This break down is simply this.. an "list" of hardware parts...inaccurate, speculative and more importantly incomplete...
That being said.. it is pricey..but not anything new..how much was the razr when it came out? the 1st Gen iPod? Diamonds are not rev1 but I see plenty of dopes paying the 5000% markup without batting an eye.. :...
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This break down is simply this.. an "list" of hardware parts...inaccurate, speculative and more importantly incomplete...
That being said.. it is pricey..but not anything new..how much was the razr when it came out? the 1st Gen iPod? Diamonds are not rev1 but I see plenty of dopes paying the 5000% markup without batting an eye.. :...
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For someone who is/was in the tech industry you sure do give little value to YOUR industry employees and their trade.
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