Thursday, July 03, 2008

Is just over 100% profit for the iPhone too excessive?

Wow, I was just reading an article and realized that a certain company might be a bit greedy...
"Analysts reckon Apple is pocketing as much as $352 per iPhone sold, based on estimates carriers pay about $525 per phone, which Apple is thought to spend about $173 to make, according to iSuppli, which tracks manufacturing costs.That means Apple could make between $12.3 billion to $15.8 billion in gross profit on the iPhone over the next two and a half years."
The article also states that analysts estimate between 35 and 45 million iPhones will be sold before 2010. At $352 profit per iPhone, that comes to between $12,320,000,000.00 and $15,840,000,000.00 in pure profits for Apple. Can we blame them for charging this much? Will the high price keep people from buying it? Probably not... It is one heck of a cool phone.

So lets just say they were to lower the price to benefit both AT&T and the end user by $100... so the total cost to AT&T would be $425 and the profit per iPhone for Apple would be $252 which is only a 45.66% profit. Not the great over 100% profit they were getting before, but still pretty good. With the estimated number of iPhone sales mentioned above their total iPhone profit would fall between $8,820,000,
000.00 and $11,340,000,000.00... how can you complain with $8.8 Billion profit?

It sure would be nice to be able to get a G3 iPhone for only $99! And to think the profit Apple would still make at that price.