Mo Money, Mo Problems….Apple’s got the dough!!!!

Profit Rundown: The BIG Picture

Attention:  For those of you with financial interest in APPL, or those of you with interest in REALLY big numbers beginning with dollar signs, listen up.

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CNN.com and blog Apple 2.0 have done some “back of the envelope” analysis of the estimated profit Apple raked in after last-weekend’s blowout.  Using numbers provided by Apple (units sold), iSuppli (manufacturing tear down cost), AT&T (subsidized amount), and Piper Jaffray (model mix) they have been able to create a breakdown of the bottom line.

Here it goes:
  • At least 1 million iPhones sold over the first weekend (Apple)
  • Cost to Apple: $174.33 parts plus $50 royalties for 8GB model; $16 more for 16GB model (iSuppli)
  • Cost to consumers: $199 (8GB), $299 (16GB)  (Apple)
  • Cost to carriers: conservatively, $499 (8GB), $599 (16GB)
  • Models sold: 33% (8GB), 66% (16GB)  (Piper Jaffray survey)

The Bottom Line:
  • 333,333 8GB iPhones @ $274.67 profit each = $91,556,000
  • 666,666 16GB @ 358.67 each = $239,113,000
  • Total profit to Apple: $330,669,000

While this number is based on conservative estimates (some analysts quote the subsidy at $350.00 per phone, adding $50 million to the bottom line), it negates costs incurred in software development, shipping and distribution, packaging and accessories included with the phone.

Regardless, Apple is taking in big numbers.  We will keep you posted once official profit numbers from Apple are released.

(Via MacBlogz)

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Filed under Apple, daily news, geek, interesting, iPhone

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