Report: Apple to Make $26 Profit on Every iPhone 3G

[jrbdmb]

http://www.pcmag.com/article2/0,2817,2321677,00.asp

Interesting that PC Mag doesn't know that (1) AT&T is subsidizing the iPhone 3G so that Apple is getting much more than $199 per iPhone, and (2) Apple has many costs other than manufacturing, so calling the $26 difference between manufacturing cost and retail price "profit" is more than a bit stupid.

And then they have the cojones to state that the cost of manufacturing the iPhone will drop to $126 in 2012 if left unchanged, ignoring the obvious that the iPhone of 2012 will be much different than the iPhone of 2008, and that any attempt to predict electronic component prices over the next four years is a bit silly. Brainiacs over there at PC World.

 

[Project]

Leo Laporte made the same mistake in MacBreak Weekly yesterday. He presumed the lack of revenue sharing meant that Apple is receiving no money from AT&T.

 

[marksman]

Since they have not sold any yet, it is impossible for anyone to know that.

What if their support costs go through the roof on launch day because of some unforeseen problem?

You can't know how much profit you are going to get for something into the money is in the bank.

You can speculate... but that is all.