

Apple is making a handsome profit on its new phone








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RE: Minimum?
By psychobriggsy on 6/25/2009 10:06:37 AM , Rating: 3
How much is R&D per phone when they're probably expecting to sell 20 million of them before the next model comes out? $10 per device? Certainly no more than $50 per device - I can't see them spending $1b on iPhone OS 3 and the hardware design and testing.

Possibly they're letting the carrier make some money on each phone though. Sell it to the carrier for $500, let the carrier charge $600 for it, $100 incentive to the carrier to push that phone, and also acquiesce to Apple's demands (here, implement visual voice mail, now implement push notification, etc).

Still, that's still well over $250 profit per device, probably $300 on average. That's a good $6b profit over the next year (in reality, before the GAAP thing Apple does).

