ApplePhone Cost Breakdown

Very interesting cost breakdown on the ApplePhone over at Gizmodo:

50% profit margin sounds pretty high. I wonder if that is Apple hedging its bets that the ApplePhone won’t sell more than a few hundred thousand units…which is conceivable.

Seems about right with the overhead at apple. All those free corporate backrubs add up.

50% seriously doesn’t seem that high. Remember, with all of Apple’s stuff- you are paying for design & hype. Do you really think a Macbook pro is THAT much more to produce than a high end Tobisha or Sony laptop?

Plus, I bet at the end of the day, Apple is making less than 15% profit- which would probably be like 5 or 6% net. After you factor in shipping, warehousing, RFID tagging everything (maybe), upfront R&D, tooling, advertising & marketing, etc- the 50% margin on the hardware might not even be enough…

True enough. I had it in my head that this was the cost after manufacturing…not just BOM cost. I guess what surprises me most is that with the numbers that are being shown on that BOM, the final price doesn’t seem to be subsidized by Cingular…yet from everything I have read, there is still a contract that will need to be signed to get the phone.

huh??? what is that?

Its a TLA.

BOM = Bill of Materials (the list of components and associated pricing to build a product)

ahhh, thanks but you got me again…

A TLA is a Three Letter Acronym :wink:



Thanks for Explaining!

i have a cousin who is a mid-level exec in the jewelry industry. You really don’t want to know their profit margin. Even on those 50 percent-off-we’re-wild-n-crazy-sales, they’re raking it in.