iPhone may have 50% profit margin

An analyst firm, iSuppli has said that Apple?¢‚Ǩ‚Ñ¢s $599 iPhone could have a 50% profit margin according to a preliminary bill-of-materials.

iSuppli normally provides a “teardown” service which usually offers a regular breakdown of how much it costs companies to make their products. In the case of the iPhone, the firm did not have one to disassemble instead iSuppli worked off of its own component estimates.

iSuppli believes that the most expensive component in the iPhone is the flash memory necessary to story data and comes in 4GB and 8GB versions. $35 for the 4-Gbyte version and $70 for the 8-Gbyte model.

Many of Apple?¢‚Ǩ‚Ñ¢s products enjoy a hefty profit margin such as 45% on the iPod nano.

iphone

Reference for posting: http://www.pcmag.com

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