"Apple sold 6.9 million iPhones ...sold during the quarter ended Aug. 30." So, for the three months of June+July+August, Apple sold a total of 6.9 million iPhones. If I remember correctly, the iPhone 3G was released on July 11, and prior to that, during the month of June, Apple was "out of inventory" on the original iPhone. Am I right? We also know that "Apple recorded iPhone sales of $4.6 billion." Doing the math, this means Apple's revenue was ($4.6B)/(6.9M phones) = $667/phone. Of course, this is the average between the 8GB and 16GB, which we do not know the proportions of. http://www.businessweek.com/technology/content/oct2008/tc20081021_226499.htm?campaign_id=yhoo "Apple (AAPL) reported $7.9 billion in sales. Fiscal fourth-quarter earnings were $1.26" "had Apple recorded sales of iPhones the same way it accounts for sales of Macs and iPods (meaning that they count all profit during the quarter the phone was sold, instead of dividing it over eight quarters, as Apple does), per-share earnings would have been $2.69 on sales of $11.7 billion." Doing the math, 11.7B - 7.9B = 3.8B profit from the additional iPhones. And, (2.69eps - 1.26eps) = 1.43 additional eps from the additional iPhone sales. Apple's market cap is $85.81B/$96.87 per share = 885M shares. $1.43x885Mshares = $1.27B profit on a 3.8B revenue. 1.27/3.8 = 0.33 ($667 revenue per phone)(0.33 profit) = $223 per phone average profit . (divided amongst 8GB and 16GB models) A MacRumors official post says: "If they had been included, this would represent an additional $3.8 billion in revenue and an additional $1.3 billion in net income." http://macrumors.com/iphone/ The 3.8 and the 1.3 agree with the numbers that I calculated. Therefore, that aspect of my math is correct. *I am confident in my math; however if you find an error, please post the correction. Thank you.