Apple Shares Rise After iPhone Profit Report

· by · Apple Stock Watch

After the research firm iSuppli said in a report on Tuesday that Appleis 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. Samsungis contributions include the deviceis 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.

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John Martellaro

John Martellaro

John Martellaro was born at an early age and began writing about computers soon after that. He is a former U.S. Air Force officer and has worked for NASA, White Sands Missile Range, Lockheed Martin Astronautics, the Oak Ridge National Laboratory and Apple. At Apple he worked as a Senior Marketing Manager, a Federal Account Executive and a High Performance Computing manager. His interests include skiing, chess, science fiction and astronomy. You can follow John on Twitter at twitter.com/jmartellaro.

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