“We wanted to take a quick look at how the gross margins for Apple’s iPhone compared to Research in Motion’s BlackBerry and Motorola’s mobile phone business to see the marginal impact of each additional device sold by these companies,” Trefis reports via Seeking Alpha. “In other words, for each person that buys an iPhone or Blackberry, what does this contribute to the company? By looking at the individual sale, we can look past the R&D and total investment in each product for this exercise, which we acknowledge is a large component to most tech companies.”
“in just looking at gross margins for 2010, we estimate that Apple’s iPhone’s is around 49%, RIM’s Blackberry 35% and Motorola’s is approximately 28%,” Trefis reports. “We derived these by using our estimates for the gross profit margins for the mobile phone divisions of each company.”
“Our result is that Apple’s iPhone generates just under $15 billion in gross profits, which is more than double our estimates for Motorola and RIM with just over $2 and 5 billion, respectively,” Trefis reports. “Apple’s estimated $15 billion in iPhone gross profit is double that of the mobile phone operations of Motorola and RIM combined despite similar levels of market share — 3.7% for Apple, 2.8% for Motorola and 3.7% for RIM. This is largely due a much higher estimated average price for the iPhone, which is around $606 compared to an average of $214 for Motorola mobile phones and $305 for a Blackberry, according to the three companies.”
Trefis reports, “We believe the factors behind higher iPhone profits are its unique features, strong app store, and the halo effect generated by its other products.”
Much more in the full article here.
[Thanks to MacDailyNews Readers “Dow C.” and “GetMeOnTop” for the heads up.]