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

Discussion in 'iPhone' started by zub3qin, Jul 5, 2008.

  1. zub3qin macrumors 65816

    zub3qin

    Joined:
    Apr 10, 2007
    #1
    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?
     
  2. aethelbert macrumors 601

    Joined:
    Jun 1, 2007
    Location:
    Chicago, IL, USA
    #2
    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.
     
  3. razorianfly macrumors 65816

    razorianfly

    Joined:
    Oct 16, 2007
    Location:
    Cheshire, United Kingdom
    #3
    Apparently, a guesstimate of combined parts within the iPhone 3G, puts Apple's profit at an extra $50 over the original model.

    R-Fly
     
  4. BigPrince macrumors 68020

    Joined:
    Dec 27, 2006
    #4
    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.
     
  5. protekt0r macrumors regular

    protekt0r

    Joined:
    Jun 25, 2008
    Location:
    Albuquerque, NM
    #5
    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.
     
  6. protekt0r macrumors regular

    protekt0r

    Joined:
    Jun 25, 2008
    Location:
    Albuquerque, NM
    #6
    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).
     

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