Apple’s profit may be higher for new iPhone
Apple Inc’s latest iPhone will be more profitable than any other product in its popular iPod line of music players, despite a price tag that is half of the previous iPhone, according to a study.
Helped by lower component costs, margins for the new iPhone are expected to exceed the 50 percent level achieved by Apple‘s most popular media players, according to a preliminary study by research firm iSuppli Corp, released late on Tuesday.
“Apple‘s iPod and iPhone products typically are priced about 50 percent more than their (materials and manufacturing) costs,” iSuppli said. “With the new iPhone sold at a price of $199 and the estimated subsidy of $300, Apple will achieve an even higher … margin.
Wireless phone carriers are expected pay a subsidy of about $300 to Apple for each of the new iPhones, iSupply said.
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