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Report: Apple Gets 50% Margin On iPhone

Wishing Apple's upcoming iPhone was going to be a bit less expensive?

Well, there's definitely plenty of room for some downward movement, according to an analyst firm.

Each Apple iPhone sold will generate nearly a 50% gross margin for Apple and its carrier partner Cingular Wireless, giving the companies a hefty profit, as well as plenty of room for future price cuts, according to a preliminary functional bill of materials (BoM) estimate created by iSuppli.

"iSuppli estimates the 4Gbyte version of the Apple iPhone will carry a $229.85 hardware BoM and manufacturing cost and a $245.83 total expense, yielding a 50.7% margin on each unit sold at the $499 retail price," said Andrew Rassweiler, a senior analyst for iSuppli, in a written statement. "Meanwhile, the 8GByte Apple iPhone will sport a $264.85 hardware cost and a $280.83 total expense, amounting to a 53.1% margin at the $599 retail price."

This kind of margin isn't anything unusual for Apple, contends iSuppli.

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