* Posts by Barry Brown

1 post • joined 25 Oct 2007

How many $$$s does Apple make from an iPhone?

Barry Brown

NOT profit: ignores apples development costs

Your analysis just looks at marginal costs, and completely ignores the sunk R&D costs apple put into the iPhone.

Apple has put significant resources into developing the iPhone over the years, and needs to cover that. I imagine the iPhone won't actually break even until end of this year. While a lot of the dev costs are shared with desktop-OS X, much of them (e.g. UI/hardware) are new.

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