Apple iPhone Profit Margins

Although the long awaited Apple iPhone will not be released for another 5 months, it certainly looks like it is going to be a real hit amongst cell phone users worldwide. This new phone has received a lot of coverage in the media of late, and Apple fans continue to blog and chat about how badly they want to get their hands on one of these phones.

But what exactly will the iPhone mean for Apple? Is this going to echo the success of the IPOD?
Investigations conducted by some of the world's leading market research companies seem to suggest the iPhone will be a very profitable product for Apple. Early reports suggest Apple will make a profit margin of around 50% on each unit sold.

The iphone will be available in two different versions; the 4GB version and the 8GB version. The 4GB iPhone will sell for $499 and will cost Apple only $230 to build. The 8GB version will sell for around $599 with a build cost of only $265. Apple admits the most expensive part of both phones will be the touchscreen technology.

Apple suggests that although the price will be in the high end of the mobile phone market to begin with, consumers can eventually expect prices to fall as the costs of making the phone reduce and other similar products begin to hit the market.

The iPhone is due for release in the United States in June 2007.