Apple profiting roughly $565 per iPhone
Piper Jaffray’s people got their hands on a calculator, who ever thought such a simple device could be a weapon wielded against large companies? Anyways they did some math and found an interesting number, $565, that’s roughly how much Apple makes off of an iPhone with 2-year contract with AT&T.
They got that number buy taking the retail price of the iPhone, $399, adding the roughly $18 per month Apple makes from iPhone contracts, and then subtracting the $265 that iSuppli estimates each iPhone costs to make. Well, now we know why it was so easy for Jobs to drop the iPhone price by a couple hundred dollars, sure it was a loss, but the 90 some odd thousand iPhones he sold the 3 days after probably went a long way towards making up for that.
