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Old 07-02-2007, 03:44 PM
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GeneArch GeneArch is offline
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Originally Posted by chuck92103 View Post
Apple is making a whopping 60% profit on each one.

According to this engadget article:

According to iSuppli (no affiliation with Apple, of course), the 4GB iPhone will yield a "49.3 percent profit margin on each unit sold at the $499 retail price," while the 8GB rendition will kick back a 46.9-percent margin. You heard right, they're supposing the $499 mobile only costs Apple $245.83 to produce, while the 8GB flavor demands just $264.85. Of course, this isn't the first time a hot-selling product has been broken down by the numbers to prove just how ripped off we're all getting (if these numbers are to be trusted, that is) -- but hey, unless you've got the means to buy capacitors and LCD touchscreens by the boatload, you're probably stuck paying exactly what they ask. Plus if all this sudden competition gets a bit too heated, don't think Apple doesn't have any room to introduce a (highly desired) price drop.

And as another long time Apple shareholder, buy them iPhones!

"Apple's stock has been trading above $100 since the beginning of May, and has moved up steadily into the $120 range in anticipation of the iPhone's roll out.
The stock trades at 35 times earnings estimates for fiscal 2007, which ends in September. That may seem pricey until you factor in the fact that earnings are expected to grow an eye-popping 56 percent this year and 21 percent, on average, a year for the next five years, according to estimates from Thomson/First Call."
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