iPhone price is double the cost of its components

July 4th, 2007

Around all the excitement over the public ripping apart of the iPhone, analysis of the components has thrown up interesting information about the gross profit margin that Apple is making on every iPhone sold.

55%.

Yes, for every iPhone purchased - and estimates for weekend sales hover around the half a million mark - Apple is making a profit of 55% of the retail price.

If you add up the price of all the component parts then technology-research firm iSuppli found that producing the device costs Apple about $266 for the hardware.

The $599 price tag for the 8GB version means a markup of $333.

Of course, Apple has to recoup all of its development and marketing costs first, but as Joey from Friends would say “These babies sell themselves” so that shouldn’t take too long.

The 55% profit margin is higher than that estimated for both the iPhone and iTV.

Source: SmartPhone Reviewer

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