Monday, July 14, 2008

3G costs

AAPL sold 1-million 3G iphones this past weekend. At $199 per phone that works out to be $199-million in 3-days. We've learned that the previous iphone was costing Apple $246-$281 (depending on the model) to manufacture. Well, not only has Apple improved the technology behind the fancy phones, they also likely cut their production costs in half. The current 3G model could be coming in at around $100-$160 (depending on the model) to manufacture, according to speculation from a tear-down specialist company (they speculate b/c they have yet to actually tear down the new 3G).
So, that brings the profit margin, after manufacturing costs, to around $99,500,000.00 in 3-days. Not a bad weekend's work.

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