iSuppli: Apple iPhone has huge profit margins for the company

iSuppli: Apple iPhone has huge profit margins for the company

If we are to believe a report published by Calif.-based iSuppli Corp. Apple is making big bucks from their just launched Apple iPhone mobile phone device.

The report claims that Apple makes a profit of around $333 on each 8GB version of the iPhone device sold in the market.

iSuppli further said that as per their estimates the bill of materials and manufacturing costs of the $599 8GB iPhone comes to around $263.83.

This price however does not include the cost of research and development and marketing costs.

Before the launch of the product itself, iSuppli had estimated that the iPhone was costing the company around $264.85.

The report published by iSuppli further said that Infineon Technologies AG is providing Apple with much of the core communications capabilities of the device. This includes the digital baseband, radio frequency transceiver and power management chips.

Samsung too is a major contributor to the manufacturing of the iPhone. They are providing an ARM RISC core along with the iPhone’s NAND flash memory and dynamic RAM.