That’s A Sweet Deal For You, Mr Jobs
It’s amazing, on the face of it, that even though Nokia out-sells Apple 15 to 1 on the number of phones they each ship, Apple makes 10X more profit than Nokia. In Q2 Nokia’s profit was $291 million; Apple’s was $3.25 billion.
But when you look at it a little more closely, it’s not so odd.
The original 2007 iPhone was estimated in 2008 to be delivering a profit of $230 per phone.
The original iPhone 3G was estimated to cost only $100 to manufacture, and the original iPhone 3GS was estimated last year to have a BOM + build cost of $178.
Yet these things sell for several hundred pounds.
When I bought my iPhone 3G in January from Tesco I paid £360 for it.
But it only cost $100 to manufacture the iPhone 3G in May 2008 when it was launched.
Between May 2008 when the iPhone 3G was launched, and January 2010, when I bought mine, the BOM + build cost of the iPhone 3G must have, at the very least, halved.
So it cost $50, or £35, to make the iPhone 3G which I paid £360 for.
That’s a sweet deal for you Mr Jobs, I hope you spend my money wisely.