What do you think the profit margin is on the iPhones?

snook911

macrumors 6502a
Original poster
Aug 13, 2007
889
0
Yorba Linda, CA
Just wondering what do you think the iphones cost apple to build and what do you think the profit margin was/is. They must have made a fortune off us early adopters because you know the profit magin is still great even with the price cuts.
 

suneohair

macrumors 68020
Aug 27, 2006
2,137
0
Apple has made back their R&D costs. That is where the fortune went. Did you think it cost them nothing to develop the damn thing.

That explains the drop. Hell, maybe Apple is only make a bit right now and banking on it taking off even more. Or maybe they are losing money with the same assumption. Nobody knows.

The price dropped. Get over it. I don't care what they were making or what they are making now. Nor should you. You bought the iPhone because you wanted it and thought it was worth it.
 

jordanshoes

macrumors newbie
Aug 7, 2007
23
0
The price dropped. Get over it. I don't care what they were making or what they are making now. Nor should you. You bought the iPhone because you wanted it and thought it was worth it.
People need to stop using that rationale. You dont drop the price of a product by $200 2 months after it comes out
 

liquid stereo

macrumors regular
Jan 21, 2005
163
19
Saint Paul
Butt loads

They made a butt-load of ca$h. Seriously. If they were able to drop the price by 33% then...

That being said, they're recuperating some of their dev costs with the iPod Touch, which is nothing but an iPhone without the Phone.



Just wondering what do you think the iphones cost apple to build and what do you think the profit margin was/is. They must have made a fortune off us early adopters because you know the profit magin is still great even with the price cuts.
 

suneohair

macrumors 68020
Aug 27, 2006
2,137
0
People need to stop using that rationale. You dont drop the price of a product by $200 2 months after it comes out
And why not? Because irrational people will get pissed? Please tell me where Apple promised you that they would not drop the price for what? 6 months? How long? How long does it have to be before they drop it $200.

Apple can do what they please. The rational I am using is completely correct, you just don't like it. Whose problem is that?

giles said:
totally agree with you, $200 for 2 months is so not worth it.
Then why did you buy it?
 

snook911

macrumors 6502a
Original poster
Aug 13, 2007
889
0
Yorba Linda, CA
is every thread psoted going to turn into a screaming match about the dropping of the price. I was just wondering if someone maybe had some info about how much they cost.
 

sJv

macrumors regular
Jul 11, 2007
169
0
Sierra Foothills, CA
My theory on how Apple was able to drop the price $200 is that Apple was pocketting the standard AT&T contract kickback themselves to help pay down the R&D cost. Now they are giving this kickback to the customer, just like other phones.

Still, I wasn't expecting this to happen so soon after launch. Maybe Apple felt it necessary to keep up the sales momentum.

-steve
 

aristobrat

macrumors G5
Oct 14, 2005
12,269
1,319
Please tell me where Apple promised you that they would not drop the price for what? 6 months? How long? How long does it have to be before they drop it $200.
Out of curiosity, can you recall a time where Apple's cut the price of hardware 30% only 60 days after launch?

I think that since Apple doesn't "promise" anything, a lot of people based their expectations on Apple's prior track record.
 

kdarling

macrumors P6
My theory on how Apple was able to drop the price $200 is that Apple was pocketting the standard AT&T contract kickback themselves to help pay down the R&D cost. Now they are giving this kickback to the customer, just like other phones.
Perhaps so.

What's ironic is that no one seemed to complain before when I kept bringing up Apple stealing their buyer's subsidy of $200, or taking royalties each month.

"If it benefits Apple, it's good" they said. So why complain now? It sounded like the fans were happy giving Apple extra money.

It also appears that almost all the outrage is from youth, who still think life is fair, or that their favorite companies give a d**n about them. It's a hard, sad lesson in real life, and I'm sorry for the ones who actually worked hard to get one. But not at all sorry for anyone who couldn't afford it to begin with. Poor judgement there.

If Apple were really clever, they'd offer a $200 credit towards any future Apple purchase. Then they can continue to rake in the money from their fans.
 

tribe3

macrumors 6502
Nov 1, 2005
350
0
Vienna, VA - USA
Apple was freaking out because sales were not meeting expectations; that's why they did that cheap move. Nobody drops 33% price on a product that's selling like hot cakes.
 

rayward

macrumors 68000
Mar 13, 2007
1,608
53
Houston, TX
When the first came out, I saw an article where Apple stated their profit margin as over 50% on the iPhone. I remember it because it pushed the stock price up a few more bucks.

If it's 50% on $600, that's $300 (du-uh). So now they make only $100 on $400, or 25%. Still none too shabby.