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How Much Does Apple Profit from the iPhone 4S?

Updated on October 23, 2011

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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    • Zion Delhi profile image

      Zion Delhi 

      6 years ago from New Delhi, India

      ZION TECHNOLOGIES -- A PREMIUM SERVICE PROVIDER COMPANY OFFERING SALES AND SERVICE OF HIGH END PDAs SUCH AS IPHONE, BLACKBERRY, IPOD AND HTC. A ONE STOP SHOP WHERE TECHNOLOGY MEETS AFFORDABILITY FOR CUSTOMERS. GENUINE SPARES ARE USED FOR ALL REPAIRS.

      ZION TECHNOLOGIES HAS MADE IT INCREDIBLY EASY FOR YOU TO GET QUALITY IPHONE, BLACKBERRY, IPOD AND HTC REPAIRS WITHIN THE SHORTEST TURNAROUND TIMESPAN. QUALIFIED TECHNICIANS PROVIDING ACCURATE DIAGNOSTICS AND CONSECUTIVELY PERFORMING DEPENDABLE REPAIRS .

      WE MAINTAIN THE LARGEST INVENTORY OF GENUINE SPARE PARTS FOR ALL THE ABOVE HIGH END PDAs. EASY REPAIR AND DIAGNOSTICS ON YOUR FAVORITE PRODUCTS

      WALK IN AND GET YOUR IPODS,IPHONES SERVICED IN FRONT OF YOU OR YOU COULD ALSO MAIL IN YOUR FAVORITE GADGETS AND WE GIVE AN INSTANT DIAGNOSTIC REPORT WHICH DOES NOT COST YOU A SINGLE PENNY !!!!!!!!!AND THEN THE CHOICE IS YOURS OF COURSE WE KNOW YOU WILL CHOOSE ZION !!CHOOSE DEPENDABILITY!!

    • Phil The Gain profile image

      Phil The Gain 

      6 years ago from Planet Earth

      Of course they are going to make tons of money.

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