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Old Jul 5, 2007, 07:03 AM   #1
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Android1
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Join Date: Oct 2003
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Arrow Apple's iPhone profit margin greater than 50%

Each 8GB iPhone sold by Apple Inc. puts $333 more in the till than the device cost to build, a market research company said today after tearing apart the new phone.

El Segundo, Calif.-based iSuppli Corp. calculated the bill of materials and manufacturing costs of the $599 8GB iPhone as $263.83, giving Apple a profit margin of nearly 56% on the device. The tear-down analysis only spells out what's inside the iPhone, component prices and estimated cost to make; it doesn't take into account research and development or marketing costs.

Earlier this year and before iPhones were actually available, iSuppli had pegged the cost at $264.85.

As other tear-down artists have done, iSuppli named the suppliers of iPhone components. Infineon Technologies AG, a German semiconductor supplier, provided much of the core communications capabilities of the device, including the digital baseband, radio frequency transceiver and power management chips, said iSuppli. Infineon's parts accounted for $15.25 of the iPhone's bill of materials, or 6.1% of the total.


Source: Computerworld
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