No Surprise, Apple Makes A Ton Of Money On Each iPhone 4S Sold
October 20, 2011
Apple is one of the world’s most profitable companies, as its stock price continues to prove. Now, we have a better idea how much money the company makes on each iPhone 4S it sells. And yes, its a lot, according to an analysis by Electronista.
According to a new report, the 16GB version of the iPhone 4S costs Apple about $188 per unit, or 50 cents more than the iPhone 4 model. Of this cost, the A5 chip costs $15, while the handset’s eight-megapixel camera is estimated to cost $17.60. Apple’s margins improve significantly the more the flash storage. Here, the 32GB models costs Apple $207, while the top-end 64GB model costs $245.
Therefore, not counting the full cost of developing and selling the phone, Apple makes the following on each iPhone 4S sold, assuming unlocked and contract-free prices:
During this week’s conference call with investors, Apple estimated a 40 percent gross margin across all of its products. Yeah, Apple is doing just fine, don't you agree?
- 16GB - Cost: $188, Price: $649, Net: $461
- 32GB - Cost: $207, Price: $749, Net: $542
- 64GB - Cost: $245, Price: $849, Net: $604
