Apple to make $26 on every sold iPhone 3G

June 27th, 2008

by praveenrdeepak

The new iPhone 3G is all set to hit the market for just $199. Since its launch, the price has been depreciating. According to a preliminary analysis by iSuppli Corp., the new Apple iPhone 3G materials and manufacturing cost is $173. The initial retail price of the phone announced by Steve Jobs will be $199. iSuppli has performed a breakdown of the costs using insights from its analysis staff to develop estimates of iPhone content, suppliers, and costs. “The new iPhone is significantly less expensive to produce than the first-generation product, despite major improvements in the product’s functionality and unique usability, due to the addition of 3G communications,” said Dr. Jagdish Rebello, director and principal analyst for iSuppli.

In India, Vodafone and Airtel are already taking pre-orders to cash on the hype but the real thing is India doesn’t yet have a 3G network and so it will just be a phone to flaunt about in India.

According to Beta PC World, “The original 8Gbyte iPhone carried a cost of $226 after component price reductions, giving the new product a 23 percent hardware cost reduction due to component price declines.” Tina Teng, wireless communications analyst at iSuppli, added that if the 3G iPhone design is unchanged, the cost should drop down to $126 in 2012. Although the base iPhone 3G will sell for just $199 at retail, Apple will receive far more than that in the U.S with AT&T footing the bill as it does with most phones. Expect the same with carriers in India. Wireless carriers subsidize much of the cost of devices and make up the difference with revenue from new and existing subscribers.

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filed under Technology, News on Friday, June 27th, 2008.
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