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iPhone estimated margins

Posted on July 5th, 2007

According to BusinessWeek, Portelligent took the iPhone apart and estimated the cost of the 4-gigabyte model to be in the neighborhood of $200 and the 8-gigabyte model to be in the neighborhood of $220. The phones sell for $499 and $599 respectively.

The touch screen is the most expensive part, it costs ~$60. “This screen is like nothing I’ve ever seen before,” said David Carey, Portelligent’s CEO.

If the estimates are correct the margins on this new product, offered by Apple, are at 60%. Apple is known for releasing products generating 50%+ margins.

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