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Apple earns $831 from every sold iPhone

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Apple earns $831 from every sold iPhone
Apple earns $831 from every sold iPhone
The total sum of money, which Apple earns from every sold iPhone was estimated at $831. According to the Financial Accounting Standards Board, Apple receives $18 a month from AT&T for each iPhone customer, which makes $432 for two year contract. Including the device’s price ($399), that makes $831 for each of the famous music-phone. Specialists estimate the iPhones hardware at about $250, which indicates $581 (or ~230%) profit for each one sold by AT&T.

source and image courtesy of: Gizmodo

24 Comments
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posted on 20 Oct 2010, 01:41

1. (unregistered)


thats kinda sickening

posted on 29 Oct 2007, 16:54

2. tluv00 (unregistered)


Straight from Steve Jobs pockets to the companies lawyers'.

posted on 29 Oct 2007, 17:11

3. Gib (unregistered)


Wow....Apple has got a nice little gig for themselves. Nicely done....

posted on 29 Oct 2007, 18:28

4. Jack (unregistered)


yeah, and meanwhile AT&T is getting f***ed in the ass. nice job AT&T. way to let apple just bend you over like that.

posted on 29 Oct 2007, 19:19

5. CRWEL (unregistered)


I agree with Jack and that is the same reason Verizon rejected Apple

posted on 29 Oct 2007, 19:29

6. unkown (unregistered)


att will get there money back from the monly plans required for the iphone

posted on 29 Oct 2007, 21:51

7. attemployee (unregistered)


apple got us good

posted on 29 Oct 2007, 23:25

8. david (unregistered)


Dear friends i agree and disagree with you .Good for apple and att they are in a business of making money .My question is who is stupid to fall for degenerated iphone it looks attractive but thats about it and if you are too lazy to transfer your music to mp3 go wit i tunes i currently use tmobile mda for 1.8 years and i have on it things people with iphones will probably never have i have loads of high quality games 7 mp3 players to choose tomtom navigator mortgage calculators my phone turns on and of with scheduleand i paid for it only $100 did i say i get it replaced as many times as i want and i get all info backed up an my sd card check out handango.com hor software and htc .com etencorp.com for hardware asus and mio also make top notch pocket pc with gps build in so before investing $400 and let some company make $831 on you research so before spe

posted on 30 Oct 2007, 00:17

9. (unregistered)


If anyone is naive enough to believe this post on its face, then the world is hurting more than I thought. If you were to amoritze the research and development costs into this "profit per phone", what would the net be? Also, it is likely that this is not the reason Verizon rejected Apple. Wasn't it popular belief that Apple was the one that rejected Verizon - most likely because Verizon has a "software" lock on all of the mid-evil devices?

posted on 30 Oct 2007, 09:30

10. FerneyZAN (unregistered)


HAHA!! The funny thing is that there are a whole lot of people out there that thinks they got juiced, and guess what they did, and to make things even funnier is that it was partly done by them selves.. LOL!! Anyways, by now after sooo many years of seeing how APPLE does business, how in the heck anyone would have thought that Apple was not here to make money. VERIZON DID rejected Apple, and now they wish they didn’t, because if they had not done so, they would had claimed the Top #1 spot again by now. But since ATT did went with Apple, not only Apple is making money from the so easy to fool some of us, but AT&T is making huge money too. There are really no losers here unless you consider your self one.. LOL!! Only imagine if Apple and Verizon would had been the ones.. Not only the iPhone would had been much more appealing, but it would had come with 3G from the start. But am sure that there was a good reason for Verizon to reject this deal, some are obvious, and yes, Verizon is money hungry like Apple, they want to make as much money meaning they could not find even ground, but that is a different story.. LOL!!

posted on 30 Oct 2007, 09:51

11. another att employee (unregistered)


just incase you didnt know david HTC makes cell phones for att also. You have the 3125 smart phone the 8125, 8525, and att tilit pocet pc's which do all the things your current phone dose...so your not special at all...att hasnt really been screwed because we earned somewhere around 2million customers to already existing 64million...plus those customer are commited to 2 years with us and the monthly contract of 42 dollars we earn a month per phone line so whats 42 times 2 million...84mill...thats a whole lot of money for a company to earn from only 2mill of its 64+ mill allready existing customer

posted on 30 Oct 2007, 10:39

12. david (unregistered)


dear another att employee i wasn talking about htc but pocket pc windiws mobile and how much more superior those devices over iphone and yes any normal person should go with htc tilt over iphone just look at reviews for tilt and yes i personaly think that that 2 mil people eather too reach or to stupid or both

posted on 30 Oct 2007, 10:43

13. david (unregistered)


and thew only reason i have mda and tmobile and not stupid att because once you buy a phone from att you screwed no insurance and just try to get a warranty exchange i am waiting untill tmobile will get tilt and did i mention i pay $50 month for 3000 minutes and service is great so instes=ad of insalting people try to research more

posted on 30 Oct 2007, 11:39

14. another att emplyee (unregistered)


david...I wasnt trying to insalt anyone...sorry if thats the way it sounded...I do plenty of research and just like any wireless carrier it all depends on where you live...here in NH t-mobile its to popular and mda is non existant...I have been a customer of att for over 4 years and a employee for less then a year and I have never had any problems getting a warrenty exchange...its actually the easiest process i ever went through...I had sprint verizon and t-mobile and what i went through with them compared to what I have now...there is no comparison to how simple it was with att

posted on 30 Oct 2007, 12:34

15. Dave (unregistered)


Let's be honest here... We all know that Apple is in the business of making money. We know that the quality of their devices are very high. It doesn't really surprise me that they're making so much money on the iphone, and I honestly don't even mind, because it means that they're gonna continue to put out even better hardware. What it comes down to is that, if they didn't make any money off of the iphone, they'd probably stop making them, and not make any more new models either, and that's not something I want to see happen.

posted on 30 Oct 2007, 15:29

16. nameless (unregistered)


From what i have just read from the reviews and everything..it seems that "david' is a pretty mad at the fact of a iphne. Now let me clerify before you think im trying to target u and insult u bc this is not that. What i really think is that ur mad because the iphone is selling more than ur phnes. The HTC is very popular including the Tilt but come on, nobody wants to carry around something that feels like 10lbs. on ur hip.

posted on 30 Oct 2007, 15:32

17. (unregistered)


It is a good device....dont get me wrong but the tilt is not something u really can use with one hand...but the iphne is so just stop being mad at something u didnt come out with....

posted on 30 Oct 2007, 16:34

18. david (unregistered)


does i phone have a gps no 3.2 mp camera no keyboard no1.8 oz difference not bad 1000s of availible software dont think so and the only reason iphone sold as many because american buyer is an idiot and sadly if you don t understand the differens which you could see on this website you cant be to beight eather

posted on 30 Oct 2007, 17:42

19. Tomal (unregistered)


>>another att employee & >>dave I have both htc mogul and Iphone. I am a tech junkie. I need the htc fofor its business use, the way it can communicate with microsoft exchange, office apps, and utility apps and games, but what kills me is speed, almost every other day soft reset, rom updates, storage and accessories. Vice versa I like Iphones' media capability, storage, accessories, fashion statement, no foobars (unless u hack it), ease of use. I hate that it cannot be customized (legally), not much apps, cant change carriers, and warranty coverage (if it has physical damage then just cry and go to your happy place). As for Apple and Att, well all business' are here to make money. Most business make the most money in the US (I am not prejudiced, I have done research), especially the mobile industry. Almost all the mobile companies have locks on their phones "for customer protection' (whatever) whereas Europe does not, such locks makes average phone users to purchase phone customization (ringtones, and such) from the service provider only. It is all about how to make the most money in the easiest way. Now recently apple just declared no Iphone purchases via cash and Apple issued Gift cards to prevent hacks ( I see that is henious). Cause when Iphones are sold in europe by the end of the year very soon they will be unlocked by Apple cause the the EU is very strict when it comes to monopoly (microsoft just got reamed recently by EU). But here I wouldn't be surprised if after the initial 5 yrs with Att, apple decides to renew only with Att, in order to prevent unlock capability. but that is my 2 cents

posted on 30 Oct 2007, 18:35

20. david (unregistered)


dear tomal i have a crazy bunch of software installed on my mda which has prossecor 2 times slower and 2 times less memory than tilt it never freezes on me you have to know how to instal and what to instal

posted on 31 Oct 2007, 10:44

21. (unregistered)


david...no it doesnt have 3.2 mp or keyboard but at the sme time..if somebody wnts a huge cmra thn get a digital cmera...pls to comment on tomal he is right..the device does freeze up..it doesnt matter how many installs u do...devices are going to freeze up every once in awhile...pls its funny cuz if u thnk about it u say american buyers r idiots but IF U was the one tht mad the device would u be happy people r gtting it or americans would still be idiots...?

posted on 31 Oct 2007, 15:31

22. (unregistered)


well, hoorah for commerce.. but the problem w/ the title is that you include the retail price of the phone in that 831 of "profit". Unless apple is the first company in history to have a phone with zero cost, the arguement is already flawed. Now in that "PROFIT" that they say they make, they also forgot to include R&D costs, utilities, paying people, and all sorts of stuff on top of how much the phone cost to make off an assembly line. Please have an understanding of business practices and P&L. Now on to the rest. I am a VZW employee. We were the first to be offered the Iphone. We turned it down flat, because we wont accept anyone making demands about how to use our service. There is a reason why we are the #1 network, #1 carrier, #1 in real profit, #1 in cust satisfaction, #1 in growth, lowest in churn, and #1 in service. Iphone sold alot of service for ATT, but it still couldnt keep up with what we did without the Iphone. Even with all of those "profits" this article claims, VZW outprofited all other companys by almost double for Q3. We are not worried about the iphone in the least, we laugh at it. We always have. Since when do you pay to send your phone in when it doesnt work, and then pay to get the battery changed out? How much??? No thanx. The writer of this article needs to learn how a business works, not follow Hillary Clinton Economics. The rest of you replying just need a correction!

posted on 06 Nov 2007, 09:10

23. (unregistered)


whoever told this "Verizon Guy" that they are #1 in everything is a joke...now be for real you all couldnt carry the iphone cause your network could not support it...and far as cst service..i dont even have to respond to that cause YOU know that is not correct...you must be somebody that is mad they dont have a iphne...but dont take to heart, just switch to the #1 carrier!....: )

posted on 06 Nov 2007, 20:16

24. Krhainos (unregistered)


I think its funny how everyone criticizes the iPhone. How everyone complains about the 400 dollar price tag. Thats kind of the point to be unique you cant be like everyone else and if you cant afford $400.00 for the phone and $60.00 a month for a low plan well thats really not anyone elses fault but yours. If apple is making $831.00 from every iPhone sold, good for them how do you expect them to make profit. Its so easy to complain "It dosent have this it dosent have that" look what it has compared to everything else.

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