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Thursday June 25, 2009
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There's another shiny new gadget on the market, and that means it's time for another teardown from the folks at iSuppli. This time out the team tackled the new iPhone 3GS. According to the company, the 16GB model has an estimated price tag of $178.96--that's $172.46 in parts and $6.50 for manufacturing expenses.
That's a bit of a bump from $174.33 that the company estimated it would cost to put together the iPhone 3G this time last year. All things considered, it's not a huge profit margin, given the phone's $199 price tag--at least it's not before the carrier costs are factored in.
For a full break down of manufacturering costs, check out iSuppli's site.
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June 25, 2009 12:24 PM
You're so off it's not even funny. The $199 price is the subsidized price of the iPhone 3GS for signing a 2 year contract. The iPhone by itself with no contract is $599/$699 for the 16GB/32GB. So The profit is about $400.
July 9, 2009 9:18 AM
@ Daniel
You're right to point out that Apple's revenue on the iPhone is significantly more than $200. However, the profit is nowhere near as simple to calculate as revenue - materials. The costs listed here are only materials. Apple also has to pay for R&D, patents & licensing, labor, marketing, overhead, shipping, and a whole host of other expenses out of that $600 revenue. These iSupli reports don't come anywhere close to representing the true cost of what it takes to create these devices.