Apple iPhone margins 55 percent

[neufuse Veteran]

source: http://news.moneycentral.msn.com/ticker/ar...amp;Symbol=AAPL

good freaking greif thats a nice profit margin for apple.... going by this apple made between $100 million and $150 million in a weekend!

NEW YORK (Reuters) - The most expensive iPhone model could deliver a profit margin of more than 55 percent for Apple Inc. after hardware and manufacturing costs, according to iSuppli, which examined the components of the widely anticipated device.

Apple shares rose more than 4 percent after the research firm said on Tuesday that the hardware and manufacturing cost was $265.83, or almost 45 percent of the $600 retail price for the iPhone model with eight gigabytes of storage.

ISuppli said its estimates did not include costs such as royalties and logistics. Some analysts have also speculated that AT&T Inc. , the exclusive U.S. service provider for the phone, may take a portion of the iPhone retail price for devices it sells in its stores.

According to iSuppli, the phone's display, a much lauded feature for the device, costs $27 or about 10.8 percent of the device's hardware costs. The display was supplied by Germany's Balda AG , iSuppli said.

The phone's core communications chips, from Infineon Technologies AG , represents $15.25 or 6.1 percent of the cost.

The iPhone, which combines phone, music playing and Web browsing capabilities, went on sale on Friday June 29 as thousands of buyers lined up at Apple and AT&T stores.

Estimates for Friday and Saturday sales of the device ranged from 312,000 to 500,000, according to analysts contacted by Reuters. AT&T said that iPhone sales for the weekend were the strongest for any device in the company's history.

In January, iSuppli said it had estimated a $264.85 hardware and manufacturing cost for the eight-gigabyte device before the firm was able to take the phone apart to look at its components.

Apple shares were up $4.85 or almost 4 percent to $126.11 in hectic trading on Nasdaq after the news. Shares of AT&T were down 53 cents at $41.32 on the New York Stock Exchange.

Copyright 2007 Reuters

[PL_ Veteran]

So THAT'S why it costs so much :|

[neufuse Veteran]

So THAT'S why it costs so much :|

Yeah, kinda BS isn't it? Apple fans scream its just $600 of tech... psh... its $300 in profits, i could see $50 to $75 a phone but $300+?

[jackwanders]

Yeah, kinda BS isn't it? Apple fans scream its just $600 of tech... psh... its $300 in profits, i could see $50 to $75 a phone but $300+?

This 'analysis' fails to take into account the cost of research and development. Remember, Apple was pouring money into the iPhone for years without seeing one dime in revenue.

Each iPhone may havea 55% profit margin, when compared to the manufacturing cost of the phone, but I think it'll be a while before the iPhone represents an overall profit for Apple.

[sundayx Veteran]

Plus the cost of marketing and logistics has not been taken into, and the profits needs to be shared between T and AAPL.

[sn00pie]

Pretty amazing, 55% profit and it's selling for $600, PS3 is selling for a similiar price but isn't even making a profit.

[TheElite]

This 'analysis' fails to take into account the cost of research and development. Remember, Apple was pouring money into the iPhone for years without seeing one dime in revenue.

Each iPhone may havea 55% profit margin, when compared to the manufacturing cost of the phone, but I think it'll be a while before the iPhone represents an overall profit for Apple.

You heard 4-5 years ago that Apple was going to sell an iPhone?

[PL_ Veteran]

You heard 4-5 years ago that Apple was going to sell an iPhone?

Steve Jobs has been researching a Newton successor for quite a while now.

[neufuse Veteran]

Steve Jobs has been researching a Newton successor for quite a while now.

But this isn't the successor to the newton... thats the sad thing... Apple is still working on a PDA apparently (rumors) that has scribble input like the newton did

[sundayx Veteran]

^I think the multi touch interface is a good dip into the handheld/tablet market.

[PL_ Veteran]

But this isn't the successor to the newton... thats the sad thing... Apple is still working on a PDA apparently (rumors) that has scribble input like the newton did

Please...this is the closest we'll get to a Newton successor. They'd be better making an iPhone Pro or something.

Newton failed anyways, and companies tend to avoid places where they've failed badly before (i.e. Mac Portable - PowerBook)

[Boz]

Please...this is the closest we'll get to a Newton successor. They'd be better making an iPhone Pro or something.

Newton failed anyways, and companies tend to avoid places where they've failed badly before (i.e. Mac Portable - PowerBook)

Interesting view, now when you said it, the lack of many features on the current iPhone could explain the release of the more powerful iPhone pro. Very interesting, you might be onto something here. I mean they already have the hardware, all they have to do is sell us a $799 version of the same phone with more functionality. This could explain the completely CLOSED DOWN phone features.

[shakey]

who here cant wait to pay $800 for the iphonepro!!!?

[DoubleThink]

So THAT'S why it costs so much :|

Greed. Yes, that's all it is. :ermm:

[jackwanders]

You heard 4-5 years ago that Apple was going to sell an iPhone?

No, you're right. He just threw it together single-handedly the weekend before it was announced

:s

[Agnes Leroy]

Apple is the Shylock of the consumer electronics segment. I am waiting for Antonio (Nokia/Sony Ericcson/Samsung?)

[Nicholas-c Veteran]

so basically if they weren't such money grabbing idiots we could have it cheaper..

fun

[TheElite]

No, you're right. He just threw it together single-handedly the weekend before it was announced

:s

It was all pure speculation up until a year ago, so unless you're Jobs brother, I doubt anyone even contemplated the iPhone 4 or 5 years ago.

[agrobbin]

Q: How long has the iPhone been in development?

Jobs: We started with the iPhone three years ago. We're product folks ? we wanted to create a phone we loved. When we started this, none of us loved our phones. Yet, if you talk to iPod owners, or Mac owners, they love their iPods and Macs. We wanted to make a phone so great, you couldn't imagine going anywhere without it. That was our goal, and we think we achieved it. That's why we have such butterflies in our stomach. We'll get to see Friday if people agree with us.

Source: http://www.usatoday.com/tech/techinvestor/...henson-qa_N.htm

Maybe not 4 years but at least 3 according to Jobs.

--Alex

[jackwanders]

It was all pure speculation up until a year ago, so unless you're Jobs brother, I doubt anyone even contemplated the iPhone 4 or 5 years ago.

Do you really think Apple took the iPhone from 'sparkle in Steve's eye' to 'manufacturing' in a single year?

Don't you understand what R&D is?

[giga Veteran]

It was all pure speculation up until a year ago, so unless you're Jobs brother, I doubt anyone even contemplated the iPhone 4 or 5 years ago.

I vaguely remember seeing FCC documents and patent filings for some sort of touchscreen item. Many thought of a tablet..

[sn00pie]

We all thought it was a widescreen/touchscreen iPod for movies. Remember that?

[Crazysah]

Man... Can't apple reduce the [rice by atleast 50$. Don't they have enoguh profits?

[backdrifter]

I cant blame Apple for this, I wouldn't cut down my profit margins neither, if people happily paid for my product.

[TheElite]

Do you really think Apple took the iPhone from 'sparkle in Steve's eye' to 'manufacturing' in a single year?

Don't you understand what R&D is?

The info didn't leak about any production of an iPhone. Thats why it was all speculation. So I doubt ANYONE knew for certain it was being made 4-5 years ago, even you.