[...According to Fortune magazine, Apple 2.0 iPhone profits were an approximate 330 million dollars in a matter of three days, due to the release of the new iPhone.Their breakdown is as follows:At least 1 million iPhones sold over the first weekend (Apple)Cost to Apple: $174.33 parts plus $50 royalties for 8GB model; $16 more for 16GB model (iSuppli)Cost to consumers: $199 (8GB), $299 (16GB) (Apple)Cost to carriers: conservatively, $499 (8GB), $599 (16GB) (iSuppli)Profit per phone: $274.67 (8GB) and]
According to
Fortune magazine, Apple 2.0 iPhone profits were an approximate 330 million dollars in a matter of three days, due to the release of the new iPhone.
Their breakdown is as follows:
At least 1 million iPhones sold over the first weekend (
Apple)
Cost to Apple: $174.33 parts plus $50 royalties for 8GB model; $16 more for 16GB model (
iSuppli)
Cost to consumers: $199 (8GB), $299 (16GB) (
Apple)
Cost to carriers: conservatively, $499 (8GB), $599 (16GB)
(iSuppli)
Profit per phone: $274.67 (8GB) and $358.67 (16GB)
Models sold: 33% (8GB), 66% (16GB) (
Piper Jaffray survey)
Bottom line:
333,333 8GB iPhones @ $274.67 profit each = $91,556,000
666,666 16GB iPhones @ $358.67 each = $239,113,000
Total profit to Apple: $330,669,000.
Further research has shown that a good portion of these customers were already iPhone users, most of which had to break their contracts to buy one (if you had a 2 year contract), and the ones that were not iPhone users, still broke their contracts with other providers to get the new unit. So, lets also take into consideration the hefty fee of breaking a contract, and starting a new one. Depending on your previous provider, it could be more or less but here are a few examples of possible scenarios.
Verizon Wireless
$60-$175 (The amount is reduced $5 per month for each full month toward the contract’s term the customer completes.)
$199 (iphone 8g)
$36 (activation fee)
$295-$410 (total)
Sprint
$200 (The company has plans to introduce a prorated early termination plan by end of 2008.)
$199 (iPhone 8g)
$36 (activation fee)
$435 (total)
T-Mobile
$50-$200. (Charge is $200 with more than 180 days remaining on contract; $100 with 91-180 days left. For those with fewer than 91 days remaining, T-Mobile charges either
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