Not sure what the launch date is over there, but, here in the US, it was interesting to read that the cheapest model of Apple's new GodPhone, which is about to go on sale for $199, costs about $173 to make, according to an estimate by research firm iSuppli Corp. The phone, which updates last year's model with G3 functionality, faster Internet speeds and a built-in GPS navigation feature, goes on sale on July 11.
But, Apple freaks shouldn't start shedding tears on behalf of their "Sacred Silicon Valley" company... .Cos Apple's profit is much more than the $26 difference between the cost and retail price. The retail price is subsidized by AT&T, the exclusive carrier. So, in effect, AT&T will be buying phones from Apple at a higher price, then selling them to consumers at a loss because it earns back the difference through monthly service fees.
ISuppli estimates that AT&T will subsidize each phone by $300. Other analysts have put it at $350. In either case, the subsidy creates a whopping great margin for Apple. But, as I've said many times before... Steve Jobs is an evil genius!
George Parker
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