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Apple Shares Rise After iPhone Profit Report

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.

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You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site: Apple Shares Rise After iPhone Profit Report 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. Observer Comments Show: Subjects Only \| Full Comments Comment on this Article Guest Posts Visible. Hide Them. Back to top Page 1 of 1 Comments are currently closed. Please email the author instead. The Mac Observer Reader Specials TypeStyler For Mac OS X is Now Shipping! Download The Free Fully Functional 60 Day Tryout at www.typestyler.com OWC: Get the Right Memory / Ram for your Mac. Top Quality, Competitive Prices, Lifetime Warranty. Expert Support and Video Installation Guidies too! 4.0GB Matched Sets from $87.99, Options up to 32GB. Click here If you're using a Mac, then you've gotta check out Full Tilt Poker for Mac. This Full Tilt Poker bonus code does the unthinkable, it actually rewards! For the latest Apple products use Ciao, a price comparison website, to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate mobile phones like the Apple iPhone. Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.	__________ Buy Stuff, Support TMO! Podcast: Mac Geek Gab Podcast: Apple Weekly Report TMO on Twitter! <script language="JavaScript" src="http://bullseye.backbeatmedia.com/bullseye/adserver/253/191/viewJScript?pool=3160&type=3158&pos=16&zone=5000&redirect=aj&dontcount=1"></script> <noscript><a href="http://adserver1.backbeatmedia.com/servlet/ajrotator/253/191/clickCGI?pos=16&zone=5000"><img src="http://bullseye.backbeatmedia.com/bullseye/adserver/253/191/viewCGI?pool=3160&type=3158&pos=16&zone=5000&redirect=aj&dontcount=1" border="0"></a></noscript> <script language="JavaScript" src="http://bullseye.backbeatmedia.com/bullseye/adserver/253/986/viewJScript?pool=16773&type=13884&pos=25&zone=5000&redirect=aj&dontcount=1"></script> <noscript><a href="http://adserver1.backbeatmedia.com/servlet/ajrotator/253/986/clickCGI?pos=25&zone=5000"><img src="http://bullseye.backbeatmedia.com/bullseye/adserver/253/986/viewCGI?pool=16773&type=13884&pos=25&zone=5000&redirect=aj&dontcount=1" border="0"></a></noscript>
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