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iPhone: only $1,500

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November 23, 2007 – Comments (1)

So much for that humorous notion that iPhone retail prices are not supported by "subsidies" or big revenue shares from the carrier. Germany gives us a glimpse of what an iPhone costs without that monthly check from the carrier to Cupertino.

1 Comments – Post Your Own

#1) On November 23, 2007 at 6:33 PM, jcrash (99.65) wrote:

I don't think it is precisely correct to call it a subsidy.  They are just making the price the same in both markets.

 If I make something for $5 and sell it for $10 with a contract that pays me $2 a month for a year, I make $29.

Those $2 payments aren't a subsidy.  As a corollary, if I sell the same product for $34 with no such contract, I make the same amount of money.  The iphone in no way shape or form costs Apple $1500 to produce.  That is off a LARGE amount, closer to an order of magnitude than a simple percent error.

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