Teardown reveals iPhone's 90 per cent profit margin
Two major component companies set to benefit from sales of Apple's new smartphone creation.
Research firm iSuppli has conducted a teardown of Apple's new iPhone that shows the device is heavily reliant on components from the likes of Samsung and Infineon, as well as generating a stunning profit margin for Apple.
In January, iSuppli predicted a $264.85 manufacturing cost for the 8GB iPhone. After its teardown, iSuppli found that the total manufacturing cost of the 8GB iPhone was $265.83. The retail price of the phone is $599.00, resulting in a retail mark up of around 90 per cent, excluding labour and other overheads.
Below is a list of the major components of the phone, along with their costs and the percentage of their contribution to the build cost:
According to iSuppli, 4.5 million units of the phone are expected to have shipped by the end of this year, with that number rising to 30 million units by 2011.
Sign up today and you will receive a free copy of our Future Focus 2026 report - the leading resource for IT decision-maker insight on priorities and investment areas in AI, security and more.
-
ITPro is 20!We take a look back on the past two decades since ITPro launched...
-
Cyber experts issue alert after two ransomware groups team up on ‘unprecedented’ threat campaignNews The tie-up includes a new model of industrialized ransomware deployment that significantly lowers the barrier to entry for cyber crime