Does Apple make more money off an iPhone 3G or an iPod Touch?

[zub3qin]

Does anyone have any data on this?
The old iPhone pricing model let Apple profit share with AT&T on the subscription costs. If I understand correctly, Apple now only makes money off the hardware, and not profit share with AT&T on the subscription fees.

If this is the case, does Apple find more profit in selling a 3G iPhone or the iPod Touch?

The reason I ask is that if Apple just wants to sell hardware, and could care less whether you are using it with AT&T or not, then I see no reason they wouldn't make the next generation iPod Touch have speakers and camera.

No?

 

[aethelbert]

Just because revenue sharing is over doesn't mean that they're not making any more money from AT&T. Even with the pre-subsidy prices, I'm sure that they're making more profit per unit off of the phones than the iPods.

 

[razorianfly]

Apparently, a guesstimate of combined parts within the iPhone 3G, puts Apple's profit at an extra $50 over the original model.

R-Fly

 

[BigPrince]

ATT is subsidizing the price of the phone. It is probably in the 200-300 range. I'd venture to say Apple is making more on the iPhone.

 

[protekt0r]

Agreed with all... Apple makes more off iPhone. The communications chips, camera, and camera subsystem probably doesn't amount to more than $20 per phone. Seeing how Apple charges (right now for reg. iphone) $100 more for an iPhone w/ the same amount of memory... well... you do the math. They'll be making even more dough when 3G is released.

 

[protekt0r]

Does anyone have any data on this?
The old iPhone pricing model let Apple profit share with AT&T on the subscription costs. If I understand correctly, Apple now only makes money off the hardware, and not profit share with AT&T on the subscription fees.

If this is the case, does Apple find more profit in selling a 3G iPhone or the iPod Touch?

The reason I ask is that if Apple just wants to sell hardware, and could care less whether you are using it with AT&T or not, then I see no reason they wouldn't make the next generation iPod Touch have speakers and camera.

No?

Offering those things might canabalize iPhone sales. Also, no one currently offers an MP3 player w/ a camera. But then again, no one offers an MP3 player with touch either. (note however that cameras w/ mp3 players do exist)

It's a good question. I'm sure a lot of people would get good use out of a camera on an iPod Touch. But i'm going to venture to say it won't happen for a while. Adding a camera would almost certainly increase the thickness (something Apple hates to do).