Apple prices iPhone at $666, says analyst
Devilishly good margins made
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The Jesus phone costs carriers a diabolic $666 on average, one Wall Street analyst has claimed. That figure brings Apple enough margin to hack prices and "take over the smartphone market".
So forecasts Needham & Co. analyst Charlie Wolf. “Our analysis indicates that the average price of an iPhone was $666 in the fourth quarter with close to a 50 per cent gross margin," a number of websites report.
That margin has filled Apple's coffers, making for what Wolf called an "astonishing increase in Apple’s revenues".
"Apple’s non-GAAP revenues were 48 per cent higher, its gross profits were 66 per cent higher and its net income was 114 per cent higher than the corresponding GAAP metrics," he said.
Kerching.
All of which allows Jobs and Co. to cut the cost of the iPhone 3G to carriers, who, in turn, can lower subsidised prices - perhaps to no more than $99 (£63) in the US.
Here in the UK, it's already available for nowt but a £45-a-month airtime subscription, though if you pay less, the handset's price tag rises to £99 ($155). If Apple cut its prices, O2 could give the thing away on any tariff.
ATT prices the phone at $199 (£127), so it's subsidising the phone to the tune of $467 (£298) if Wolf's $666 calculation is correct.
All this means "Apple has considerable flexibility to reduce the price of the phone in tandem with its subsidized price," said Wolf. "If Apple were to pursue this strategy, the iPhone could effectively take over the smartphone market."
Outselling RIM is only the start, it seems.
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COMMENTS
Not a smartphone
The iphone is not a smartphone. On a smartphone, you are able to download and install your own apps. Going through a store doesn't count -- by that definition, every single phone Verizon sells is a smartphone, since apps can be got via the "GetItNow" app store.. clearly some random camera phone isn't a smartphone though. Jailbreaking? It's probably a smartphone then, but this voids the warranty and Apple tries to break it with every single update, so I'm not sure that it counts in terms of saying it's "taking over the smartphone market". It could BECOME a smartphone if Apple released a patch allowing people to put their own apps on, but they will not, Jobs is too much of a control junky.
Paris, because people claiming the iphone is a smartphone gives me a headache too. I couldn't find a steve jobs with horns.
I don't see why i should be forced to Jailbreak
... just to get good SMS. It should be fully featured out of the box as its a basic must have of mobile phones. If someone sends me a business card via bluetooth or SMS on my N95 it pops up in my messages and i can add to my addresses. If i get a picture via SMS in an MMS message i should be able to add it to my photo gallery. If i get a meeting invite via SMS i should be able to add it to my calendar .... all these things i can do on a phone several years older .... and you just cannot assume people want to interact with you over email for these things. Not everyone is restricted by the iPhone!
@MErefield
Yup, mine does Multiple Recipient SMS out the box and I too use SwirlyMMS on my jailbroken one... Apple probably see the whole, free data and WiFi think as enough of an incentive for sending an email that's free, though i do agree in many ways it's handy to be able to send and receive them, but i email a lot more now from the phone as it's so easy!
Agree with Alastair too, it has some faults, but on the whole it's so much more satisfying to use than any other smartphone I have ever used or owned... just wish the 3G would get fully hacked so I can have fun with GPS :)
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