iPhone Teardown Puts Components at $220

Wow. I think in another thread people were guessing about $250. Not too shabby.

Oh snap. This sort of profit isn't normal, is it?

by the time you factor in productions costs, r&d costs, packaging and shipping costs, i dont think apple is make huge amounts of profits on this. Obviously a small amount, but not loads!

Oh snap. This sort of profit isn't normal, is it?

As mentioned, this isn't the total cost. There are still manufacturing/assembly/packaging/R&D costs to be recouped. Not to mention advertising.

Apple is making at least $100 per unit. Otherwise whats the point?

Honestly, the final cost isn't anywhere near $220. Like they said it doesn't include assembly, research, development, packaging, shipping, marketing, patents, costs to cut deals with carriers, the developement of the visual voicemail for EACH carrier they use on each continent and it's also the first phone Apple has ever made, things will be a lot cheaper with Rev B hardware and software. They've got everything laid out now. Small changes in the software and hardware won't cost nearly as much as the original development.

The original iPod was $500, and it too probably had a component value of ~$220.

Let's see what the Rev B iPhone and iPhone Mini cost before we start complaining about Apple's profit margin without even an educated guess as to what the entire project cost to get this thing into our hands.

Apple is making at least $100 per unit. Otherwise whats the point?

in the words of my friend steve jobs..."I'm RICH BIATCH!!! *trucker horn* HONK HONK!!

Apple is making at least $100 per unit. Otherwise whats the point?

The profit on the iPhone itself won't be quite as important if, as rumoured, they are taking a cut of the $60+/month contract cost. If they take 10% that would still mean almost $200 for a $80/month plan.

Apple is making at least $100 per unit. Otherwise whats the point?

Well it can't lose money otherwise SJ could never get the company to agree to it, but have you seen the way he talks about the iPhone? It's like his new baby, he would have done it for free.

...The original iPod was $500, and it too probably had a component value of ~$220.

Let's see what the Rev B iPhone and iPhone Mini cost before we start complaining about Apple's profit margin without even an educated guess as to what the entire project cost to get this thing into our hands.

I take this news to mean that there's still room for a price drop on the Rev. A iPhone. Before long, we'll probably see the price come down by about $100 on each version (4G and 8G). Right now, Apple can get away with a large margin because there are people who will buy it regardless of price. I'd bet we'll see a price drop before the next hardware revision. There's still quite a bit of functionality that can be added through software updates.