55% margin on Apple iPhone 3G

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.

Recently Published

It’s ok, your moon photos aren’t fake, they are just enhanced – quite a bit

Have you taken a photo of the moon recently? I almost did, the other day, when I spotted a fabulous moment here in Dubai....

Don’t move! You’ll jinx it! This looks like a tiny bit of innovation in the mobile world

It has been quite a while since I’ve seen anything in the mobile industry that’s caused me to want to write much. Just look...

The new BlackBerry movie trailer is here

Were you a BlackBerry fan? Of course you were. At some point, almost everyone was. I still remember the days and the joy that...

Airalo: The easy way to roam globally with a data eSIM

Shortly before I began my FinTech & Banking Tour around the GCC, I popped into the Apple AppStore and searched ‘eSim’. I wondered if...

Etisalat: That’s fast

I was at the Mall of the Emirates the other day whilst I was in Dubai. I think it's almost obligatory to go there...

Oh… wait, is that the phone I’ve already got?

I am delighting in the fact that I am able to write again - mostly over at FinTech Profile or LinkedIn - as I...