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Apple making huge margin on iPhones

iSupply says iPhone costs just £135 to make

Researchers at iSuppli are claiming Apple is charging double the manufacturing costs for iPhones.

iSuppli analysts have disassembled the 8GB iPhone since its Friday debut in the US The analysts dissected the components used to create the device and furnished estimates of the likely cost of the parts used.

They found that high-end model - the most expensive to buy at $599 (£300) - actually imposes manufacturing costs of $265.83 (£135). While the cost estimate ignores logistics, patent royalties and administration/freight, it does suggest Apple's margins could be as high as 55 percent on the product.

iSuppli estimates Apple will sell 4.5 million iPhones this year and over 30 million handsets by 2011. Apple is aiming to sell ten million iPhones in 2008.

An analyst at Goldman Sachs on Monday issued a revised prediction that Apple sold as many as 700,000 phones this last weekend, in contrast to previous estimates claiming over 550,000 sales.

See also:

Activation hell for iPhone buyers

Warning over iPhone scams

First look: Hands-on with the iPhone

Hackers could unlock iPhone today

The iPhone killers: best products of 2007


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