Wednesday, October 12, 2011

Apple iPhone 4S manufacturing margin at 71% to 73%

GSM Arena reports that "As for the promised Bill of Materials (BOM),  the Deutsche Bank analyst Chris Whitmore says that the iPhone 4S costs between $170 and $220 to build, depending on its capacity. That adds up to a manufacturing margin of 71% to 73%, which is the highest in the industry, but then again, Apple gear has hardly ever been the most reasonably priced around."

Yikes. No wonder Apple makes so much money. In fairness, not all Apple products have such a high margin.

iPhone 4S (16GB) - BOM: US$170  ---  Retail Price: US$649 
iPad 2 (16GB WiFi) - BOM: US$320  ---  Retail Price US$499
11.6" MacBook Air (64GB) - BOM: US$718  ---  Retail Price US$999

Apple probably makes as much money as it makes from selling three iPads or two MacBook Airs.

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