Apple Makes 55% Profit Margin on 8GB iPhones Page: 1


Profit Margin of 8GB iPhone Estimated at 55 percent

The recently released iPhone from Apple has had a major turnout from customers and is selling extremely well. iSuppli, known for their hardware price analyses, has determined that the cost to produce the iPhone is $265.83, leaving a profit margin of about 55 percent on the 8GB iPhone, which is $599. Stock in the company also rose 4 percent after this news was released.

These prices do not factor in any royalties or logistics, and it is unknown if network provider AT&T takes any profit on iPhone sales. With $333.17 to be gained over initial sale, it seems that any royalties may be easily paid with room to spare. This large profit from Apple could cause quite and uproar, but for stock holders, they are just hopeful it doesn't decrease sales, which is doubtful.

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