Apple's iPhone margins estimated in excess of 50 percent



  • Reply 41 of 45
    anantksundaramanantksundaram Posts: 20,386member
    Originally Posted by willrob View Post

    55% profit margin = 125% profit per 8G phone. Just another way to look at it.

    Did you even read the posts prior to this before saying something like this? (e.g., #4, #35). Since some people seem to go on about "profit" margin when the article is about the "gross" margin, here's a brief tutorial (assume no debt, for simplicity -- Apple doesn't have any, anyway):

    1) "Profit" = Revenue - Total Cost - Taxes. (Also called "Earnings" or "Net Income")

    2) "Total Cost" = Cost of Goods Sold (CGS) + SG&A (i.e., direct costs + indirect costs)

    3) Taxes = (Revenue - Total Cost)*(Tax Rate)

    "Gross" margin = (Revenues - CGS)/(Revenue).

    "Profit" margin = (Profit)/(Revenue)

    Thus, for example, if the Revenue is $10, CGS = $4.5, SG&A = $3, and the tax rate is 30%, the "gross" margin is (10 - 4.5)/(10) = 55%, but the "profit" margin is (10 - 4.5 - 3)*(0.7) = $1.75, or 17.5%.
  • Reply 42 of 45
    Originally Posted by DaveGee View Post

    It took several YEARS before the US #2 cellular provider had it.... but yea... talking world-wide most everyone did have it as an offering. Hmm did Cingular & T-Mobile & Sprint ALL have the RAZR at the same time??? I'm not sure... but I do know Verizon did get it last given their network.


    Wrong. Verizon got it in the fall of '05. Sprint got it fall of '06 ( I know, I have one). From what I recall, Cingular didn't even get the RAZR until after it was available unlocked for a good deal of time.
  • Reply 43 of 45
    flounderflounder Posts: 2,674member
    Originally Posted by wnurse View Post

    Yes, apple will improve their products and charge the same price while other companies also improve their products and lower the price. Apple fans think improving the product at same price is same as lowering the price while everyone else EXPECTS a company to improve their products AND lower price. Hey, the apple world is different.. i get that.. just don't feed me FUD about apple lowering price.

    also, 349 is not that big a difference from 399.. we are not talking a drop from $500 to $99 are we?.

    I mean, if you can't afford it at $599.. why would you afford it at $559?.

    1st, $50 bucks is $50 bucks, and you can't just discount that because it suits you.

    2nd, how can you simply ignore both the fact the today's $349 iPod has many many many more capabilities than the original, and that there are many more iPod models, with much lower prices than $399.

    Your whole argument with regards to iPods makes zero sense. They DID improve the product and lower the price. One way to look at it is that the original iPod is now much much thinner and lighter, much longer battery life, a color screen, displays photos, and sells for half the price (I'm referring to the 4 GB nano).

    PS, I don't think you know/understand what FUD means.
  • Reply 44 of 45
    solipsismsolipsism Posts: 25,726member
    I've never been so happy for the rumour mill. Thank you iSuppli.
  • Reply 45 of 45
    bert25bert25 Posts: 16member
    Originally Posted by solipsism View Post

    Heh I've been saying the same thing. It's about bloody time my stock went up.

    That is a good point. If we go by the actual HW then a copy of Leopard, Vista, or PhotoShop are all worth about 5 cents for the cost of the DVD they are imprinted on.

    PS: Samsung is more on iPhones that it is on most of the crappy cell phones it sells.

    All the negative articles was part of the reason AAPL stock lost money even with several fantastic news after iPhone's release last weekend. Seems the dam has broken and now the stock is on it's way up but how far up next week? 135? 140? maybe even 145?

    At WSJ Marketbeat:

    "Over at Minyanville, Jeffrey Cooper gets all crazy technical, whipping out charts of triangles and pennants and Triangle Pendulum Buy Signals to basically make the point that Apple shorts hoping for a post-iPhone swoon in the stock have been eaten alive. And their bad week may not be over: ?The ?Good News? Bears may be squeezed as momentum traders pile back on board,? he writes."

    Here's the link to the article... that guy is indeed crazy with the charts but this seems to make sense to me...


    ...On an interesting note, the company?s earnings are due July 25 after the close. Additionally, late July squares out initially at the 133ish level with an alternative and potentially even better square out as high as 145 to 147.

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