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Huge iPhone Margins Revealed as Microsoft Aims to Halve WinPho Prices
The cost to Apple to make an iPhone 4S 16GB has been revealed as just £125, indicating impressive profit margins for the firm on its latest hot-selling device.
The figures were calculated by analysts IHS iSuppli, revealing a build cost of just $8 per handset and a parts bill of $188 for the 16GB iPhone 4S. The 32GB version has a total cost of $215 and the 64GB model $253, demonstrating Apple’s impressive ability to produce goods at minimal cost.
Microsoft recently announced they were seeking to reduce the cost of components for Windows Phone handsets to less than $200, but Apple’s figures show how far behind Microsoft must already be.
Microsoft’s Andy Lees, head of the Windows Phone division, recently said that the company was looking to reduce the price of WinPho handsets in order to try to gain a bigger share of the smartphone market. Microsoft has admitted that sales of Windows handsets have been disappointing, and it is keen to boost customer levels, even if that comes at the expense of profit margins on its phones.
Apple has no such worries, already holding as it does a significant share of the market, and looking to expand this over the coming months. Selling handsets at £499 which cost £125 to make, Apple looks set to stuff its already-bulging coffers.
Apple’s CFO Peter Oppenheimer has indicated that he expects his company to bring in $37 billion over the next quarter. With a 150 per cent margin on the ever-popular iPhone, it’s not hard to see why his predictions are so high.
iPhone news posted by Jan Moys on 21 October 2011
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