Apple Shares Rise After iPhone Profit Report

by , 3:10 PM EDT, July 3rd, 2007

After the research firm iSuppli said in a report on Tuesday that Apple's profit margin on the iPhone is more than 55%, Apple stock shot up nearly US$6, according to Reuters.

iSuppli said that the estimated manufacturing cost of an 8 GB iPhone is US$265.83, only 45 percent of the retail price. However, the cost does not cover royalty payments and logistics.

The iPhones display, one of the most notable features of the iPhone, costs about US$27, according to iSuppli. The communications chips account for about $15.25. The research firm said that Samsung Electronics is "perhaps the biggest winner" among the iPhone parts suppliers, with its components making up $76.25, or about 30.5% of the parts in the 8GB iPhone. Samsung's contributions include the device's applications CPU, NAND flash and DRAM memory chips.

The overal estimate of the cost was similar to previous estimates.

Reuters added that some analysts believe AT&T is getting a portion of the profit for the iPhones sold in its stores.

The NYSE closed early on Tuesday, 12:00 PM, in observation of Independence Day. Apple stock closed at $127.17.

If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.