Apple to get 50% of each iPhone sale

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If the iPhone succeed as a cellphone, and even though it’s tied to Cingular for several years, Apple profit should be high, very high. The iPhone is generating a 50 percent margin for Apple, reports Apple Insider quoting iSuppli.com, and that percentage equals what the computer company is receiving for its iPod Nano.

The direct result is that with 1% of cellphone market (the market share Apple targets in one year), the iPhone would become what experts call a “third engine” to Apple growth. The second result is that Apple has a very comfortable price leverage that it can used to boost its sales, seasonal declines, and anticipate the next generation of iPhones.

Jan 19, 2007 | By Nuno

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