Cellular News has a detailed viewpoint on the components used in the iPhone. The piece ends pointing out a BOM/manufacturing/royalty margin of 55% for each iPhone. Interesting stuff.
Beyond the $174.33 BOM and manufacturing cost of the iPhone 3G, Apple is spending an estimated $50 on IP royalties per unit shipped. With the 8Gbyte version retail-priced at $199, and the estimated $300 subsidy paid by AT&T to Apple for each unit, Apple is selling the product at a price of $499, and spending $224.33 to produce each one. This gives Apple a BOM, manufacturing and royalty margin of 55 percent for each 8Gbyte iPhone 3G unit sold.
With the market saying 'no' to Nokia's Ovi Store, what do you think can be done to change this?
