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Old Jul 5, 2007, 07:03 AM   #1
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Android1 knows why the caged bird singsAndroid1 knows why the caged bird singsAndroid1 knows why the caged bird singsAndroid1 knows why the caged bird singsAndroid1 knows why the caged bird sings

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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