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>$575 profit per iPhone? I think you mixed up profit with something else, maybe average sale price.

The number is from the usual suspect Asymco.

http://www.asymco.com/2012/04/02/android-economics/

>Whereas Android generates $1.70/device/year and thus an Android device with a two year life generates about $3.5 to Google over its life, Apple obtained $576.3 for each iOS device it sold in 2011[4]. The economics of Android are nothing like the economics of iOS.




That's revenue (gross income) not profit (net income). Look at the charts on that article, they say all "revenue", the article is about revenue.

Apple has an ASP on iphones on the order of 650 and a profit margin on the order of 40%. They can't be making 575 profit per phone.


If that is correct, I stand corrected. I was taken in by the summary on Slashdot which stated that the profit was $575 and quoted Asymco.

http://mobile.slashdot.org/story/12/04/08/0546247/google-ear...


Slashdot has always reminded me of that clueless friend that always remembers the numbers from a news story but doesn't remember the units or have any sense of them in a meaningful context.


I don't know why people even read Asymco. His data why seemingly true, because he shows you charts and whatnot, it's usually very misleading.

Apple doesn't make $575 in profit per iPhone. The components alone cost around $300, and they only get like $650 from the carrier, but you also have to take into account all the extra costs, marketing, shipping, salaries, R&D, and so on. At most they probably make around $200-$300 in profit for iPhone, depending on the version.

The Android data is also misleading. He's taking it from what Google said in the trial. You don't think Google would try to downplay the revenues they get from Android in the trial through some smart accounting?




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