iPhone Set For Awesome Profits

Supercool new gadget sells for double manufacturing costs
By Greg Atwan,  Newser User
Posted Jul 3, 2007 3:14 PM CDT

(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.