“Apple’s margins are predicted to grow with this Friday’s launch of the iPhone 4S, with manufacturing margins north of 70 percent for the handset,” Sam Oliver reports for AppleInsider.
“Analyst Chris Whitmore with Deutsche Bank believes Apple achieves a bill-of-materials cost of $170 for the 16GB iPhone 4S, and $220 for the 32GB model. For the new 8GB iPhone 4, he thinks Apple’s materials cost is about $140,” Oliver reports. “‘This suggests manufacturing margins on the iPhone 4S are 71-73% (vs. ~38% for iPod touch) and should support attractive corporate margins for AAPL for multiple quarters,’ Whitmore wrote in a note to investors on Monday.”
Oliver reports, “Whitmore believes the iPhone 4S will keep Apple the ‘smartphone gold standard,’ and will allow it to keep the largest share of smartphone sales versus other hardware vendors. Deutsche Bank has reiterated its ‘buy’ rating for AAPL stock, along with a price target of $530.”
Read more in the full article here.
MacDailyNews Note: These are manufacturing estimates only and exclude other costs such as shipping, marketing, etc.
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]
MDN Note: “These are manufacturing estimates only and exclude other costs such as shipping, marketing, etc.”
… hardware devlopment, software development, licences, …
And assembly!
Yet Wall Street is hyping Amazon over Apple because Amazon is selling the Fire tablet for $199 and losing money on every hardware unit sale. Makes a hell of a lot of sense, doesn’t it.
They also exclude the cost of iCloud, Siri, R&D, and the cost of the team of attorneys that have to protect Apple.
MDN take: and excludes other costs such as: research & development, iOS5, ecosystem integration, etc… burned into those generic hardware parts.