“Apple Inc earned gross margins of 49 to 58 percent on its U.S. iPhone sales between April 2010 and the end of March 2012, while gross margins on the iPad were much lower during much of that period, according to a court filing,” Dan Levine reports for Reuters.
“The information was revealed on Thursday in a freshly unsealed statement from an Apple expert witness, filed in the company’s patent battle against Samsung Electronics Co Ltd.,” Levine reports. “Between October 2010 and the end of March 2012, Apple had gross margins of 23 to 32 percent on its U.S. iPad sales, which generated revenue of more than $13 billion for Apple, the filing said. Apple does not typically disclose profit margins on individual products.”
Levine reports, “U.S. iPhone sales between April 2010 and the end of March 2012 generated revenue of more than $33 billion for Apple.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]
Ok. Great! How about a little info on the story on all other Apple sites about Samsung selling twice as many smart phones as AAPL? That’s where Apple’s margins shine. They made more even though they only sold half as many as Samsung. When the iPhone five comes out Apple should be much closer.
… and I like best those considerations if Samdung products could possibly harm Apple much at al,
so the court case can get more delayed or
it ain’t so bad if Samdung keeps releasing products in the meantimel. ehn ehn.
No, they ship only double as many units.
ah so.
…wonder if I’ll ever get to post something here without some kinda error.
Anyone with half a brain could have figured out the margin stuff with very little effort. A basic iPad retails for $500, an iPhone for $650. Generally, the components for the iPad are a bit more expensive than the iPhone, so the margin discrepancy is quite obvious.
This difference in margins is the key why Apple suffered in iPhone sales, but not in iPad sales this quarter.
The price of iPad is actually quite competitive, while iPhone could compete mostly only on subsidized markets.
The most of cell phone markets in the world are not subsidized, so iPhone has hard time with competitors which 1.5-3 times cheaper.
What I like best about Apple’s 33 billion profit from just the iPhone, is that it dwarfs the 17 billion in profit that Microsoft made from ALL of its products.
How great is it when your “loss leader”, the iPad still has a 23% gross margin?
I am thinking that Apple’s economies of scale may provide a opportunity to reduce the price of the next iPhone while still maintaining decent margins. They could do with iPhone what they have done with iPad in terms of agressive pricing. yes and make it up in increased volume. not a junk phone a well made industry leading phone agressively priced. It works for me.
I know Wall Street seems to get stuck on margins, but it’s the ottom line that is really important.
Would you rather sell a hundred widgets for at a thousand dolar per profit or a million at 200 dollars per profit?