Shortly after the release of the original iPhone model, iSuppli Corp released its estimates as to Apple's hardware manufacturing costs for the device, revealing that despite the rather advanced (for the cellphone market) features the original iPhone was rocking, Apple was in fact turning a pretty healthy profit on every unit. Indeed, the original $500 and $600 price points of the iPhones represented just short of a 50% markup over their $250-$280 production costs.
Today, new news comes from EE Times that some supply analysts suspect Apple may be making an even bigger profit on the upcoming iPhone 3G models. According to Portelligent, Apple, leveraging economies of scale to secure great deals on the components it purchases to construct the iPhone, may have driven production costs on the new models down to the $100-range.
The new iPhone 3G models, will, of course, be sold at $199 and $299, 50% less than the current hardware, which could suggest that Apple is handing its production savings down the line to consumers. The interesting factor here, however, is that AT&T is now officially subsidizing iPhone 3G hardware, which means Apple may well be selling iPhone 3G units to AT&T at $400 or more.
link
meh.
Today, new news comes from EE Times that some supply analysts suspect Apple may be making an even bigger profit on the upcoming iPhone 3G models. According to Portelligent, Apple, leveraging economies of scale to secure great deals on the components it purchases to construct the iPhone, may have driven production costs on the new models down to the $100-range.
The new iPhone 3G models, will, of course, be sold at $199 and $299, 50% less than the current hardware, which could suggest that Apple is handing its production savings down the line to consumers. The interesting factor here, however, is that AT&T is now officially subsidizing iPhone 3G hardware, which means Apple may well be selling iPhone 3G units to AT&T at $400 or more.
link
meh.