David Becker
Gear

Apple's iPhone Profit Margin Pegged at 55 Percent

Wondering where the beacoup bucks you paid for your iPhone are going? Mostly into Apple’s pocket. Research firm iSuppli calculated the bill of goods for the iPhone and concluded that it costs $265.83 to make each 8GB handset. With a sales price of $600, that works out to a 55 percent profit margin, not accounting […]

470_iphone030
Wondering where the beacoup bucks you paid for your iPhone are going? Mostly into Apple's pocket.

Research firm iSuppli calculated the bill of goods for the iPhone and concluded that it costs $265.83 to make each 8GB handset. With a sales price of $600, that works out to a 55 percent profit margin, not accounting for royalties and marketing.

If you have any money left over, Apple stock is selling for around $126 a share today.

Apple iPhone margins 55 pct, shares rise: ISuppli [Reuters]