No one outside Apple has seen the inside of an iPhone, so most of this is just speculation. But even if we concede for the sake of argument that these part costs are accurate, that doesn’t mean the margins would be 50 percent. The cost to produce an iPhone is greater than the cost of its components. It’s not like they’re shipping kits of tiny pieces you have to solder yourself.
If they’re really arguing that someone could produce something with the same features and display as the iPhone and sell it for a profit for just $300 or $350, then how come no one is?
★ Friday, 19 January 2007