Apple Set for 50% Margins on iPhone Says iSuppli

The cost of manufacturing each 4GB version Apple’s iPhone is put by market analyst group iSuppli at about $230, meaning each of the phones sold could generate nearly a 50 percent gross margin for Apple Inc. and partner Cingular Wireless.

This, the researchers suggest, gives Apple plenty of opportunity for future price cuts as the market takes off.

Rebello says such a strong hardware profit is par for the course for Apple, with the company having achieved margins of 45 percent and more in products including the iMac and iPod nano.

EETimes - Apple set for 50% margins on iPhone, says iSuppli

Apple shocked Wall Street after the closing bell on Wednesday, reporting both record revenue and profits that broke the $1 billion barrier. On top of these impressive results, the company shipped more than 21 million iPods and 1.6 million Macs, a record number for the former.

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