‘EE Times’: $199 iPhone still a money maker
Posted by Dennis Sellers 
Jun 10, 2008 at 11:49am
Apple is likely to reap significant profits despite slashing the cost of its updated iPhone in half, said analysts. Although details about the phone are still scarce, sources told EE TImes raw cost of materials to build the iPhone 3G could be nearly half that of the original model/
This is according to Portelligent of Austin, Texas, a company that conducted a teardown analysis of the first handset. The first phone had a bill of materials estimated at $170 at launch, but the iPhone 3G could have a BOM as low as $100 when it debuts July 11, said David Carey, president of Portelligent, a division of TechInsights, the publisher of EE Times. Also, the cost cut is strategic for Apple as its seeks to extend its reach in the cellular market. A
“Gen2 iPhone pricing is aggressive enough that it made me think Apple’s really taking the gloves off on this one,” said Carey. “They are probably not as worried about iPhone hardware profits as they are about getting a piece of the action on service revenues and getting more Macs in homes and offices all around the globe,” he added.
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Contributor
Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
