How much does Apple make of each iPhone?
Lots!
Quote:
NEW YORK -- Apple Inc.'s shares jumped in high-volume trading Tuesday after researchers said the company will reap a gross profit margin in excess of 55 percent on its 8 gigabyte iPhones.
Apple shares added $5.91, or 4.9 percent, to $127.17 in an abbreviated trading session that ended at 1 p.m. due to the upcoming July Fourth holiday. During the past year, the stock has traded between $50.16 and $127.61, running up in recent months in anticipation of the hybrid cell phone, media player and wireless Internet gadget's June 29 release.
On Tuesday, the research company iSuppli reported that a tear-down analysis of the iPhone showed its bill of materials and manufacturing costs totaled $265.83. That means Apple would generate a margin of more than 55 percent for every 8 gigabyte iPhone it sold for $599.
...
Apple does not disclose its margins for specific products but iSuppli's estimate for the iPhone _ which doesn't include marketing or research and development costs _ falls in the ballpark of its iPod cousins that were similarly analyzed by the market research firm.
The iPhone's margin is much higher than some smart phones, like the Motorola Q, Pratt said, but he expects similar margins from the new crop of smart phones, which include Nokia Corp.'s N95 and HTC Corp.'s HTC Touch.
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What this also fails to account for are the commissions paid to AT&T for each sale in one of their stores.
Still, a margin over 50 points is better than keystone pricing - if the sales estimates of anywhere up to 700K phones are real then that is a slew of positive cash flow. >$230,000,000 to give some notion of scale.