Bernstein Research analyst Toni Sacconaghi estimates iPhone’s gross profit margins “at nearly 60%,” Phillip Elmer-Dewitt reports for Fortune.
“At that level [57.8%] they not only dwarf its competitors’ [RIM: 42.6%, Nokia: 33.3%, Motorola: 32%, HTC: 31.7%], but they could reshape Apple’s business model as the iPhone’s share of the company’s overall revenue stream grows from 30% in fiscal 2009 to an estimated 45% to 50% in fiscal 2011,” Elmer-Dewitt reports.
Elmer-Dewitt reports, “Assuming that average iPhone selling prices remain constant, Sacconaghi estimates that the iPhone will boost Apple’s overall gross margin 120 basis points in fiscal 2010 and ‘a stunning’ 385 to 513 basis points in fiscal 2011.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “JES42” for the heads up.]
Yeah, and the iPhone doesn’t even have Flash!
This will also happen with iPad.
Moolah!
What will happen with atnt?
Checked it out. NO Speaker volume control. Just weird man. 🙁
Just a thought,
en
Hang on have I just landed on another planet.
So, how about the new iPad and billion dollar server farm? Or the book and magazine income? If the iPad is going to pull the printer text market out of the crapper, what will that add to Apple’s bottom line? How about the schools that are going to replace those paper books with new iPads?
This is what happens when a company puts it priority on making the best products rather than making the most money.
Customers buy the great products no matter how much they cost and the company makes boatloads of money.
It seems so obvious.
i think apple has also said that they could/would make stuff at price points others couldn’t match. so i am not convinced that the prices won’t drop a bit – they will be able to afford it; this will accelerate things even more.
Easy to get those margins when you use underage labor ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />
@ China Labor
Cute, but remember Apple told on them selves. The rest of the guilty corporations, not so much.
RicMac,
Yeah, I hope it gets a flash with the next version. Good daytime pics; bad nightime pics.
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No, no, no. Will never happen, as we all know the iPhone does not multitask.
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And apart from that stupid argument, I also hope for no Flash (as in Adobe) in the future. But a flash (as in brightning up) would be nice.
@84 Mac Guy
Didn’t work for the Mac all those years, but luckily consumers are more aware nowadays.
Of course Apple SAY they’re not in it for the money, but if that wasn’t the end result there’d be no point, would there?
For the iPhone to really take off on Wall Street, the iPhone needs to go to Verizon, because either AT&T;decided not to cover large swaths of the financial district or Verizon jams the AT&T;signal from its big building down there. There’s no good excuse for poor Wall Street Area coverage.
“Assuming that average iPhone selling prices remain constant…”
Well that’s a big assumption!