Apple to make $26 on every sold iPhone 3G
According to a preliminary analysis by iSuppli Corp., the new Apple iPhone 3G materials and manufacturing cost is $173. The initial retail price of the phone announced by Steve Jobs will be $199. iSuppli has performed a breakdown of the costs using insights from its analysis staff to develop estimates of iPhone content, suppliers, and costs. “The new iPhone is significantly less expensive to produce than the first-generation product, despite major improvements in the product’s functionality and unique usability, due to the addition of 3G communications,” said Dr. Jagdish Rebello, director and principal analyst for iSuppli.
“The original 8Gbyte iPhone carried a cost of $226 after component price reductions, giving the new product a 23 percent hardware cost reduction due to component price declines.” Tina Teng, wireless communications analyst at iSuppli, added that if the 3G iPhone design is unchanged, the cost should drop down to $126 in 2012. Although the base iPhone 3G will sell for just $199 at retail, Apple will receive far more than that with AT&T footing the bill as it does with most phones. Wireless carriers subsidize much of the cost of devices and make up the difference with revenue from new and existing subscribers.
Source: Betanews, PC World
Comments(33)
First..
And hope its gonna be 199$ here in canada when rogers starts selling ‘em…
don’t thinks its likely tho
coff coff bulls hit coff coff
199 dollars minus the monthly subscription fee.. which would probably a 40 dollar minimum for two years at that starting price.
your math is so bad. the 199 is subsidized ATT pays apple almost 200 for each sold phone.
check appleinsider or macrumors for accurate MAC info and rumors.
http://www.macrumors.com/2008/06/19/atandt-subsidizing-iphone-3g-for-325/
the premise of this story is flawed. The phone is now sold under a normal telco subsidized model which means the telco buys the phone at a higher wholesale price, subsidizes it to the end user for $199 retail but locks you into a 24 month contract which is where they recoup their subsidy.
Actually AT&T have just increased monthly subscribtion (2 year contract) on the new iPhone by $10 per month increasing from $69 a month to $79 a month. Anyone upgrading their existing iPhone will also be charged the new rate as well as having to cancel their existing contratct which can acost as much as $200.
so….. How much on eBay?
Stick to scene releases, Rlslog. This editorial is inaccurate and displays a lack of understanding of cellular subsidies.
who cares?
Poor apple… I’m sure you could just charge the rest of the world (outside of the U.S) double the price to recoup your money as you usually do!
200$ is cheap for the iphone , but your gonna have to pay way more for your bill
My_Chemical_Romance-The_Black_Parade_Is_Dead-2008-MYCHEMiCALROMANCE
http://rapidshare.com/files/125008593/MCRTBPIDMC08.rar
FIRST IN LINE when it comes to canada…. July 12 the release it??
nobody could relly know exactly what the manufaturing costs is because apple probobly get some kind of wholesale disscount when buying stuff for the phones.
who cares about iphone, when there are so many better mobiles availalble on the market?
rapidshare link please
Whatever…iPhone for $199 is a deal, especially with all the features and enhancements. You have an option to switch to “AT&T” when you see fit. Remember, you could always wait for means of unlocking the restrictions and be well on your way. Worry will only make things worse for yourself. Yes, there are other phone options to look forward to, with less headache. Over all; RLSLOG.net kicks major @$$!!!
Apple will soon make their money when they sell it in europe. Prob be 300-400 euros (£250-£350) then their $26 will jump to about $400/$500 profit per phone…
“materials and manufacturing cost is $173.” What kind of drugs are these people on? These phones don’t cost a cent more than $35 to manufacturer. Advertising might add another $10 to that.
Materials and manufacturing do cost $173 but the cellular companies pay about $300 for each iphone. So apple gets good profits.
@14.. Be my guest buddy..You will have to LOCK into a three year plan with Rogers in Canada. Longest term in the world..worst provider in the nation..
http://www.cbc.ca/technology/story/2008/06/12/fido-iphone.html
“AT&T (T) is paying a subsidy of $325 for the new Apple (AAPL) iPhone 3G, according to Oppenheimer analyst Yair Reiner… Reiner also says that AT&T is paying Apple an extra $100 for subscribers signed up in Apple stores, for a total commission of $425. Reiner figures that all in, Apple is gettign the same revenue for the 3G iPhone as it received for the old version, only now all the payments are coming up front.”
http://blogs.barrons.com/techtraderdaily/2008/06/19/apple-oppenheimer-says-att-iphone-subsidy-is-325/?mod=yahoobarrons
it doesn’t matter
the iPhone is all about iTunes!
they want to sell you music. videos, games, apps, etc…
that’s where the REAL money is made by Apple
MS built and sold orig xbox at a loss. Still use mine daily. Awesome machine when simple mods installed.
next rlslog will be reporting that i only make a buck a year.
Why this sh-it costs 400 euros in the f*cking GREECE???
what abt apple’s profit through itunes store?
$200, that includes a lock in plan, right? How much is it to buy outright?
As someone said, if you’re already an iPhone customer with AT&T, you won’t have to change your rates. You’ll be charged the same amount, only new users will have to pay more.
plastic!
Martin you idiot. stick to movie posts bro. you have no idea how the world works. your title is wrong. your article is wrong. most of the posts you post are just dumb. you have any idea what the phone cost? and how att is subbing alot of the cost. apple is not making what yo claim on the phones. i bet you are asian, that means no commen sense
iPhone sux big time.