55% margin on Apple iPhone 3G

Cellular News has a detailed viewpoint on the components used in the iPhone. The piece ends pointing out a BOM/manufacturing/royalty margin of 55% for each iPhone. Interesting stuff.

Beyond the $174.33 BOM and manufacturing cost of the iPhone 3G, Apple is spending an estimated $50 on IP royalties per unit shipped. With the 8Gbyte version retail-priced at $199, and the estimated $300 subsidy paid by AT&T to Apple for each unit, Apple is selling the product at a price of $499, and spending $224.33 to produce each one. This gives Apple a BOM, manufacturing and royalty margin of 55 percent for each 8Gbyte iPhone 3G unit sold.