Apple's (AAPL) iPhone 4S More Profitable than Android Devices
9:29 am ET 10/10/2011 - Street Insider
Apple's (Nasdaq: AAPL) new mobile device, the iPhone 4S, has already shown positive sales trends as the company announced 1 million devices were pre-ordered within the first 24 hours.
And the iPhone may be more profitable than ever for Apple.
According to Deutsche Bank, the iPhone 4S starts at $199 with a new two-year contract, bringing the device in-line with other 3G devices. Total cost of ownership also comes in-line at $93 per month. Apple's ability to receive better subsidies from it's carrier partners -- Verizon (NYSE: VZ), AT&T (NYSE: T), and now Sprint (NYSE: S) -- however, means the company is making more money per handset. Deutsche notes carriers may be subsidizing Apple about $450 per iPhone 4S, compared with $400 for Research In Motion's (Nasdaq: RIMM) BlackBerry Torch 9810, about $300 for Motorola's (NYSE: MMI) Droid Bionic, and just over $300 for the HTC Thunderbolt.
The Bionic and Thunderbolt utilize Google's (Nasdaq: GOOG) Android mobile OS.
Bill of Materials has been estimated at $170 to $220 per iPhone 4S, translating to manufacturing margins of 71 percent to 73 percent for Apple.
Apple shares are trading 2.4 percent stronger Monday morning. |
