DMSD Insider: Apple makes as much profit on one iPhone as it does on two iPads

Thursday, July 26, 2012

Apple makes as much profit on one iPhone as it does on two iPads

Apple makes as much profit on one iPhone as it does on two iPads:

A quick Reuters report on an unsealed document in the Apple-Samsung trial reveals that iPhones are much more of a profit driver for Apple than its iPads. To the tune of double (!) per unit.

Apple Inc earned gross margins of 49 to 58 percent for U.S. iPhone sales between April 2010 and the end of March 2012…Apple had gross margins of 23 to 32 percent on U.S. iPad sales, the filing said.

That means Apple makes as much money on one iPhone as it does on two iPads (considering they cost roughly the same amount).
Who likes phone subsidies? Apple likes phone subsidies!

Also, when considering the 7-inch iPad costs, a lower margin in the 20% range means Apple can bring its prices pretty close to $200.