16GB iPhone 5 bill of materials estimated at $168

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  • Reply 61 of 63
    We know from Apple's previous statements and third party research that the profit margins on iPhones are stratospheric. The same, I suspect, is true for other smartphones. You're looking at something like 60 percent margins on the iPhone even after R
  • Reply 62 of 63

    Quote:

    Originally Posted by photoeditor View Post



    We know from Apple's previous statements and third party research that the profit margins on iPhones are stratospheric. The same, I suspect, is true for other smartphones. You're looking at something like 60 percent margins on the iPhone even after R


    It's a market economy ... Apple sells out most every phone they make, why drop the price? Plus, it's not like Apple's competition is hugely undercutting Apple's sales price.


     


    Heck, the iPhones are so popular, the prices are even high in the resale market ...

  • Reply 63 of 63
    normmnormm Posts: 653member


    We know from public filings that Apple's gross margins on iPhone for the last couple of years have been about 50%, and on iPad about 25%.  Since much of that comes from the more expensive models, which don't cost much more to make, that suggests that if you buy the 16GB iPhone or iPad, you get a good deal.  The idea that they are somehow extorting grotesque 300% profits from each phone is nonsense.

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