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  • 3g iPhone Construction Cheap(er)
    With the launch of the 3g iPhone Apple has one goal: Sales and Market dominance. The result? The 3g iPhone is cheaper to produce than the 1st generation iPhones a year ago. Lowering the price of production has allowed Apple to lower the price of the iPhone making it more accesible to millions worldwide.

    The 3g iPhone costs approx. $174.33 in materials vs. the $227 materials bill for the first generation iPhone. If iSuppli is correct on these numbers each new iPhone 8 gb costs $53 less to make than the previous version.

    How much is Apple making per each 3g iPhone? $199 price tag + $300 AT&T subsity -$174.33 in parts - around $50 in IP royalties per unit shipped = a gross profit margin of 55% or about $274.

    Although research and development, marketing, shipping, etc. are not taken into account 55% is a great number when compared to other manufacturers hardware margins. Nokia has a 36% margin across the board with its high-end models seeing a 45% margin.

    Well done Apple. Sell more units, make more money, control the market.

    [via iSuppli and businessweek]
    This article was originally published in forum thread: 3g iPhone Construction Cheap(er) started by Cody Overcash View original post
    Comments 18 Comments
    1. ALL DAY's Avatar
      ALL DAY -
      As I sometimes lose respect for Apple, it is still undeniable that they are insanely smart and business oriented and understand how to make a product.

      Bravo. Simply amazing...
    1. ilovefootball's Avatar
      ilovefootball -
      typo fourth paragraph.
    1. tobypu's Avatar
      tobypu -
      Maybe Apple should spend a few more dollars per phone and give the 3G the same quality screen as the 1st gen. iPhone.
    1. kadinh's Avatar
      kadinh -
      Quote Originally Posted by all day View Post
      as i sometimes lose respect for apple, it is still undeniable that they are insanely smart and business oriented and understand how to make a product.

      Bravo. Simply amazing...
      +100
    1. Trent J.'s Avatar
      Trent J. -
      Quote Originally Posted by tobypu View Post
      Maybe Apple should spend a few more dollars per phone and give the 3G the same quality screen as the 1st gen. iPhone.
      The "yellow" screen is supposed to be better. It is a warm screen, just like any modern HD TV has the option for the screen to be "warmer". Maybe they should have given you the option for that, but, it is supposed to provide crisper images.
    1. joeyippel's Avatar
      joeyippel -
      Quote Originally Posted by Trent J. View Post
      The "yellow" screen is supposed to be better. It is a warm screen, just like any modern HD TV has the option for the screen to be "warmer". Maybe they should have given you the option for that, but, it is supposed to provide crisper images.
      This is fixed in the latest firmware update.
    1. desepticon's Avatar
      desepticon -
      and crt's
    1. wannagotopopeyes's Avatar
      wannagotopopeyes -
      Quote Originally Posted by ilovefootball View Post
      typo fourth paragraph.
      What, a missing apostrophe? How about we comment on the information in the post and not the grammar

      cash edit: no i just can't spell . . . at all sometimes . . . even with teh speel chak. I corrected the blatant errors after reading his post
    1. Farani's Avatar
      Farani -
      Quote Originally Posted by tobypu View Post
      Maybe Apple should spend a few more dollars per phone and give the 3G the same quality screen as the 1st gen. iPhone.
      It is the same quality screen. The only differences is the color hue. And the update in firmware has taken away some of the yellow-ness.

      It's amazing to me that a company that seems to be so driven by profits can produce such amazing products. Now if only they "greened" up their products a little more and started making them in the USA. That would be excellent.
    1. dito0020's Avatar
      dito0020 -
      on addition to a smart business module, you are forgetting that this new product is revolutionazing the way we look at cell phones.

      I mean, can you really live without your iPhone after you have used one???

      My $.02
    1. huntor's Avatar
      huntor -
      leave it to cash7c3 to find all of the financial 3g details.
    1. nicktendo's Avatar
      nicktendo -
      Quote Originally Posted by dito0020 View Post
      I mean, can you really live without your iPhone after you have used one???
      My friend said the same thing after getting his 1st gen iPhone. "No way I could ever use a regular cell phone again."

      Now that I have a 3G, I agree...
    1. yowiphone's Avatar
      yowiphone -
      1st gen iPhone FTW!
    1. ALL DAY's Avatar
      ALL DAY -
      And whomever brought up the revolutionizing cell phones aspect, you are 100% correct, as Apple has previously done in the past with other products. They simply understand the things consumers want and know how to omit things that are unnecessary.
    1. zoolander369's Avatar
      zoolander369 -
      Yep. I could never live without my iPhone. I even named mine!
    1. Adamos's Avatar
      Adamos -
      Quote Originally Posted by dito0020 View Post
      I mean, can you really live without your iPhone after you have used one???
      Same here. I am forced to use a Nokia 6300 as a corporate cell phone which feels like as dumb as a remote control for an Air Conditioner....

      About the profit margin. I've read back then when the 1st gen iPhone was released that Apple had to build up the whole testing facility, etc as they have never built a phone before. That costed millions of dollars. R&D eats up a hell lot of money. Just look at Intel and AMD. They don't really have anybody else in their business as others could not afford R&D at all.

      That was my 2cents.
    1. HaiLong's Avatar
      HaiLong -
      typo third paragraph =D
    1. centre's Avatar
      centre -
      Actually, I find myself switching from my iPhone 2G to my SE W760i more often than i'd like to admit to myself. It's an excellent phone that packs 8gb music with a good mediaplayer (& AD2P!!), GPS, 3G, mobile TV, radio, running/training tracker app, RSS feeds in standby screen, opera mini and more in a package half the size of the iPhone (and the screen is still quite good)! And this is all just right out of the box.

      I won't sell my iPhone since i'd like to see what the appstore will offer later on, but i've realized you do get bored with all things eventually, even the iPhone.