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Public Council Teleconference: Application Rationalization — Hidden Costs and Smart Decisions
November 17 at 11:00 am US/Eastern (GMT-5)
Join Honorio Padrón, of The Hackett Group, who will share the drivers for companies to tackle application rationalization and the results of research that define the hidden cost of complexity. Additionally, we will discuss key decision milestones—to start or not, holding the course steady and fulfilling expectations.
Virtual Desktop Cost-Benefit Analysis — Michael Jacobs, Catlin Group
The analysis contained in this presentation measures the cost of everything from the machines and licenses to the infrastructure for virtual vs. traditional desktop environments.
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iSuppli: Apple iPhone May Yield More Than 50% Margins
The Apple iPhone announced earlier this month should pay off handsomely for the company with more than 50 percent gross margins for ...
January 19, 2007 — CIO —
The Apple iPhone announced earlier this month should pay off handsomely for the company with more than 50 percent gross margins for each version of the music-enabled smart phone, according to market researcher iSuppli.
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| The Apple iPhone |
Users don’t have to worry too much, however, because iSuppli believes Apple will have to reduce iPhone prices to compete against other handset makers.
The gross margin on the 4GB version of the iPhone will be nearly 51 percent, iSuppli said Thursday. The handset is expected to retail for US$499, but the cost of components and assembly are less than half that price, just $229.85.
The premium version of the iPhone, the one that holds 8GB of music, photos and other data, will be even more profitable. It will cost about $264.85 to make, but sell in stores for $599, for a 53.1 percent gross margin, iSuppli said.
Over time, Apple will be able to increase its profits, or lower the price tag, as it ramps up production of the iPhone, iSuppli said. In general, once sales of a hot new product start rising, a company such as Apple will increase orders, and component suppliers will reduce their price per part to win those larger orders.
 |
| The Apple iPhone[2] |
It’s important to note that iSuppli did not actually have an iPhone to tear apart for its cost analysis. The price and profit figures are estimates based on the features Apple has announced for the handset. "iSuppli has a high degree of confidence in its conclusions," it said in the report.
Apple could not be reached for comment on the iSuppli report.
The price tag on the iPhone may have to come down to attract users anyway, iSuppli said, because it will be competing with 835 other music phone models expected to be launched this year.
There are already 14 music-enabled mobile phones with features similar to the Apple iPhone shipping from companies including Nokia, Motorola and Samsung Electronics, the market researcher said.
-Dan Nystedt, IDG News Service (Taipei Bureau)
Related Links:
- Cisco Hits Apple With Lawsuit over iPhone Name
- Why the iPhone Is the Single Most Important Thing to Happen to CIOs This Year
- Why Apple i-Anything Is a Non-Issue for CIOs and Corporate America
- Apple Ad Hints That iPhone Will Have Arm Chip Inside
Check out our CIO News Alerts and Tech Informer pages for more updated news coverage.
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