How Much Does Apple Profit from the iPhone 4S?
There is a good reason why Apple is the 2nd most profitable US company in the world. Like any business, they keep their part & labor costs low. The iPhone 4S looks like the iPhone, but the inside is different. Below is the cost of the parts for the Apple iPone 4S 16GB:
- Display $37
- Memory $28
- Wireless chip $23
- Camera $18
- CPU $15
- Other mechanicals $33
- Labor $8
The total cost to make it amounts $196. For a 32GB-$207, for a 64GB-$245. The cost to the average wholesaler is $649, $749, and $849!
At retail, most phone carriers will sell the 16GB for $200 and cover the $450 themselves for a 2-year contract, which means, over two years you will pay at least that to the phone carrier for services. Now get this, if you buy with a two year contract, you pay $200, Even at only $50 a month for 24 months, the final cost of that phone will be $1200 for the carrier service + $200 the initial payment you made = $1400!!!
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