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July 25, 2008 5:13:22 PM CDT

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iPhone Set For Awesome Profits

Posted Jul 3, 07 3:14 PM CDT in Technology,  Business 

(Newser) – The 8GB model of the must-have iPhone retails for $600, but the parts cost Apple only $265.83—a 55% profit margin that helps account for the company's $186.1 million gross during the gadget's opening weekend, Bloomberg reports. A research firm took apart an iPhone to break down the component prices, which don't reflect spending on marketing or R&D.

By comparison, Motorola's phones record a gross profit margin below 30%. The numbers catapulted Apple shares up nearly 5% in high-volume trading today, to a record $121.17. As the phones move briskly, entrepreneurial nerds are uncovering the identities of chipmakers and component suppliers, most of whom got a boost on Wall Street as the secret info bled into the blogosphere.

Source Bloomberg

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Accessorize your new iPhone with Belkin cases and accessories   (Associated Press)
Joanna Swaggart, Matthew Swaggart and Kevin Bjorklund, from left, cheer as the doors open at a new Apple Store for the release of the iPhone at Woodland Hills Mall in Tulsa, Okla., on Friday, June 29,...   (Associated Press)
iPhoooooooone!   ((c) idiotboy)
T over the weekend to get their new phones activated, other techies raced to be the first to dismantle the coveted device and take a peek under the hood of one of the most-hyped consumer electronics products...   (Associated Press)
Belkin cases and cables accessorize your new iPhone   (Associated Press)
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iPhone SMASH   (thatnimrod (YouTube))

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Apple  • stock market  • iPhone  • computer  • gadget  • profits


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