iPhone 3G costs $173 to build, giving Apple an estimated 55-percent profit margin

iSuppli released some information regarding how much the new iPhone 3G really cost Apple. Based on their calculation, Apple seems to be making roughly fifty fuve percent profit margin. While iSuppli did not count into research and development cost, the number is quite interesting.

Stripping off the new iPhone 3G for component lists and price them individually, iSuppli determined that a 8GB iPhone 3G costs $173.33 to build. AT&T is rumored to be paying Apple $300 subsidy on each iPhone 3G sales, that put the iPhone 3G total prices to $499 for the 8GB version and translate to the fifty five percent margin stated above.

"iSuppli believes Apple aimed for a more cost-effective design for the 3G iPhone compared to the 2G, in order to lower the retail price - which will allow the company to seed adoption and to capture maximum market share now - while the company still has buzz and a perceived differentiation relative to its competitors."

If this number hold any truth, Apple’s one million iPhone 3G sold during the weekend should put its quarterly earning higher than before.

[via zdnet]