iPhone costs Apple ~$220?

Discussion in 'iPhone Discussion & Support' started by Alex, Jul 2, 2007.

  1. Alex

    Alex Administrator Staff Member

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    Imo, an interesting article:

    Full article: Taking the iPhone Apart
     
  2. attagirl2

    attagirl2 Well-Known Member

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    Well if that is the case then they are not making as much as people expected them to make from the small amount they are charging for the phones. I think that is was a good move on Apple's part to offer it for the price they chose.
     
  3. drew888

    drew888 Well-Known Member

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    Priced at $499 and $599 I think Apple is making a good amount of profit. I would assume that $220 estimate could even be slightly lower. I would assume Apple is able to streamline costs being the huge company they are and the estimate would be high.
     
  4. Hazel

    Hazel Well-Known Member

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    I think that is outrageous.They are making a $200 profit. Looking at my margins in the web industry, I make less than $1 on some plans. It's sickening to see Apple having such large margins.
     
  5. drew888

    drew888 Well-Known Member

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    They are a big company and were able to hype the product up enough. It's a basic supply and demand thing that will determine if and when the price comes down. They of course take advantage of all the people wanting to get it "First".
     
  6. maxpayne_20000

    maxpayne_20000 Active Member

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    Apple is a well-known company & their products are always in demand. So i guess they just took advantage of that thing. The iphone is really overpriced. They should've reduced the profit margin.
     
  7. drew888

    drew888 Well-Known Member

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    They always mark up products for their release because they know people will be buying them right away. They take advantage of that early business and when the sales start getting to a trickle they'll lower the price. Any given company selling a new product will always take advantage of the early buyers.
     
  8. sbhatt

    sbhatt Active Member

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    Well when you sell millions of the phone then I'm sure that your profits will be damned high. I'm sure that they probably get it a bit cheaper than that when they get them made in bundles in the assembly line, who knows.
     
  9. drew888

    drew888 Well-Known Member

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    Oh for sure, that $220 is just an estimate and I would think it is a little if not a lot lower than that. Just think of having a company that could sell 1,000,000 products worth at least $500 in the first week. $500,000,000 in sales and around half of it profit.
     
  10. syedwasi87

    syedwasi87 Active Member

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    hmm quite interesting, they must have quite some good margin on iphones..

    on ebay most of them go for around like 700$ or something, i have been watching them, but havent yet bought one, lets see..sure Apple is making a huge profit from iphones.