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$320 Profit Per iPhone, Or How Apple Became The World's Most Profitable Handset Manufacturer

November 10, 2009

According to data from the research firm Strategy Analytics, Apple became during 2009th third quarter "the world's most profitable handset manufacturer". So I launched calc.app to figure out what's their secret. Apparently Apple made a $1.6 billion profit while Nokia only attained $1.1 billion over this quarter. For comparison, analysts of the Deutsche Bank in 2008 had already announced that in their calculations Apple was taking about 20% of the market's profit while holding 1% of the market shares. At the time Nokia was taking about 55% of the market's profit. So what does it mean? Basically Apple is putting on incredibly high margins on its products. They receive approximately $550 per iPhone sold, so if Strategy Analytic's numbers are right, $320 of this is pure profit, how do you feel about that ? Here is the famous "Apple Tax". Furthermore by subsidizing the handset, customers don't even notice the margin. Those are incredible numbers, especially in such an industry. Congrats! [via MacRumors]

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