Surprise, iPhone is a Business not a Charity
Published by Siddiq Bello January 19th, 2007 in Apple, iPhone, margins, profits.
I didnt want to comment on Apple’s Blessed iPhone until I either personally had one in hand to play with or had more information then warmed over press release and pundit blathering to chew on. So why am I know posting about an heavily hyped, pre-launch, consumer product thats 5 months away from hitting stores?
Because iSuppli’s tear-down analysis has exploded all over the web, like the bits of your $600 phone will when it first drops to the pavement as you get out of a cab. The report suggest that for the 4GB model, which will cost around $499, you’ll be getting about $245 worth of software and electronics, the remained is in the hardcore geek-porn factor of the device itself. For the 8GB model you’ll get about the amount worth of software, electronics and “geek porn” factor but you’ll just have to pay more for it.
The early tone of many of the articles and post I’ve seen appear to be somewhat outraged, but interestingly that rage is directed more at Cingular and its service contract rather than Apple and its unapologetically expensive hardware. A breakdown of the cost components can be seen after the jump.
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