“Analyst Turley Muller, on his blog Financial Alchemist, said that with the carrier subsidies, Apple earns well beyond what it spends to build each iPhone. All three models of the phone earn more than 58 percent margins, with the 32GB iPhone 3GS carrying the most profitable 59.6 percent margin,” Katie Marsal reports for AppleInsider.
“‘Going forward Apple will recognize higher iPhone revenue carrying a higher gross margin,’ Muller writes. ‘As iPhone revenue as a percentage or share of total revenue increases, the impact of the higher iPhone (gross margin) on overall (gross margin) will intensify. This will assuage margin pressures Apple faces in other areas,'” Marsal reports.
“Muller goes on to suggest that the high profitability of the iPhone has allowed Apple to lower prices on its MacBook Pro lineup without having any effect on the company’s earnings,” Marsal reports.
Full article here.
[Thanks to MacDailyNews Reader “James W.” for the heads up.]