iPhone Gets Cheaper, Apple Gets Richer
Newest version of Apple iPhone will be sold cheaper than its predecessor. Although it doesn’t mean that Apple’s profit will drop, they have estimated that the profit will climb up. At least that is what the study result from iSuppli research company.
The reason is that components price to make new iPhone is getting cheaper. Besides, Apple is subsidized by telecommunication operator who use iPhone to get new customers. “Apple iPod or iPhone usually been sold 50 percent higher than production cost. Because of the operator subsidy, Apple’s profit will be even more.
According to iSuppli, for each unit of this new iPhone, telecommunication operator will give subsidy of USD300 to Apple. Meanwhile, the production cost of one unit iPhone 3G is around USD173. This means that Apple will get hundreds of dollar profit from each unit of new iPhone which sold at around USD199/unit.
The previous version of iPhone has higher production cost, which is USD 265 per unit and no subsidy. First generation of iPhone was sold at USD 500 when launched.