Tuesday, October 1, 2013

iPhone 5S and 5C have higher margins

The new iPhone 5S and 5C apparently are cheaper to manufacture than the iPhone 5 which should end up in an even higher revenue for Apple.

top iphone margin revenue make money
Apple is one of the most profitable companies ever when considering their products. Now, according to the American analyst Chris Whitmore, Apple has managed to squeeze in even more margin with the newly released iPhone 5S and iPhone 5C models compared to the iPhone 5.

According to Whitmore, while iPhone 5 costed $207 to manufacture, the iPhone 5S has a manufacturing cost of $199 while the iPhone 5C costs $174 (due to the plastic casing). This should result in an even higher expected profit for Apple.

Consider the fact that the 16 GB model of the iPhone 5S is sold for $649 and the iPhone 5C for $549, Apple is making a pretty good profit for every unit sold. This could obviously also be viewed from another perspective which shows that Apple significantly overcharges for their products, typically referred to as the Apple Tax. 

Nonetheless, it is admirable to see a company managing to get this high profits and still remain highly competitive in a market segment.

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