Apple iPhone struck down on the unsuspecting with a real bang and there is certainly a large amount of people who are waiting for the new, and in some aspects very fresh, mobile phone. LG’s new Prada phone is a hot competitor for iPhone, but if there is something Apple has on its side it’s the prices, or at least sales margins. As we’ve reported at a few occasions Apple have managed to create products with a decent retail price and more than plenty of margin resulting in a fat profit. According to analytical company iSuppli, iPhone is certainly no exception. It has namely calculated the component costs of iPhone and they are pretty low in comparison with the retail price of Apple’s phone.
According to the survey the material cost for a 4GB iPhone will be about 250 USD, which with a retail price at 499 USD means that Apple has a margin of close to 50%. From what we’ve understood this is without any of the extra costs such as shipping and advertising, but it still hints that Apple has the possibility to cut prices. If nothing else, it should be able to make a lot of money on iPhone.
