Comments on: iPhone 4 x 1.7 million = $1,105,000,000 http://icodeblog.com/2010/06/28/iphone-4-x-1-7-million-1105000000/ iPhone Programming Tutorials Sat, 03 Jul 2010 15:22:57 +0000 hourly 1 By: Rook http://icodeblog.com/2010/06/28/iphone-4-x-1-7-million-1105000000/comment-page-1/#comment-5709 Rook Tue, 29 Jun 2010 19:45:06 +0000 http://icodeblog.com/?p=2046#comment-5709 MisterX: Retail price (per unit) minus marginal cost (per unit) is precisely what "margin" refers to. Overhead is counted separately. Anyway I'm quite sure that having made an estimated $700 million profit in 3 days, Apple has already recouped the R&D cost of the device several times over. MisterX:

Retail price (per unit) minus marginal cost (per unit) is precisely what “margin” refers to. Overhead is counted separately. Anyway I’m quite sure that having made an estimated $700 million profit in 3 days, Apple has already recouped the R&D cost of the device several times over.

]]> By: MisterX http://icodeblog.com/2010/06/28/iphone-4-x-1-7-million-1105000000/comment-page-1/#comment-5706 MisterX Tue, 29 Jun 2010 09:23:43 +0000 http://icodeblog.com/?p=2046#comment-5706 You can't count the margin by just taking into account the price of the components. For this device, like for any other good, is there research & development costs, structure costs, and just mounting costs.... If you get that in addition with the $188, I'm not sure it's still a 70% margin. [I agree. However, iSuppli simply calculates the bill of materials and manufacturing in that number and it tends to be generally accepted. What is missing, of course, are other expenses such as shipping as well as R&D. Marketing and PR, by the way is generally estimated to be in the 7-10% range. -wolfgang] You can’t count the margin by just taking into account the price of the components. For this device, like for any other good, is there research & development costs, structure costs, and just mounting costs….
If you get that in addition with the $188, I’m not sure it’s still a 70% margin.

[I agree. However, iSuppli simply calculates the bill of materials and manufacturing in that number and it tends to be generally accepted. What is missing, of course, are other expenses such as shipping as well as R&D. Marketing and PR, by the way is generally estimated to be in the 7-10% range. -wolfgang]

]]> By: iPhone 4 x 1.7 million = $1,105,000,000 | iCode http://icodeblog.com/2010/06/28/iphone-4-x-1-7-million-1105000000/comment-page-1/#comment-5700 iPhone 4 x 1.7 million = $1,105,000,000 | iCode Mon, 28 Jun 2010 21:20:04 +0000 http://icodeblog.com/?p=2046#comment-5700 [...] Original post on iCodeBlog [...] [...] Original post on iCodeBlog [...]

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