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

Discussion in 'iPhone' started by snook911, Sep 5, 2007.

  1. snook911 macrumors 6502a

    Aug 13, 2007
    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.
  2. suneohair macrumors 68020


    Aug 27, 2006
    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.
  3. jordanshoes macrumors newbie

    Aug 7, 2007
    People need to stop using that rationale. You dont drop the price of a product by $200 2 months after it comes out
  4. liquid stereo macrumors regular

    Jan 21, 2005
    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.

  5. Giies macrumors member

    Jul 23, 2007
    totally agree with you, $200 for 2 months is so not worth it.
  6. suneohair macrumors 68020


    Aug 27, 2006
    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?

    Then why did you buy it?
  7. /dev/toaster macrumors 68020


    Feb 23, 2006
    San Francisco, CA
    Thats just how it is ... ANYTIME you buy an item, you risk finding it cheaper or better somewhere else. Its just how it works.
  8. snook911 thread starter macrumors 6502a

    Aug 13, 2007
    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.
  9. sJv macrumors regular

    Jul 11, 2007
    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.

  10. aristobrat macrumors G5

    Oct 14, 2005
    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.
  11. kdarling macrumors demi-god


    Jun 9, 2007
    First university coding class = 47 years ago
    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.
  12. tribe3 macrumors 6502

    Nov 1, 2005
    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.
  13. rayward macrumors 68000

    Mar 13, 2007
    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.

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