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When the iPhone 5 hit the market last fall, it took the smart phone world by storm. With the cheapest model starting at only $199, it had 4S users dumping their outdated Siri for the newest and greatest model.
However, how much does it actually cost for Apple Inc., to produce its coveted smart phone? According to Valuewalk.com, the iPhone 5 costs Apple about $215 to build.
Valuewalk.com went on to explain that this means the revenue on most models that are higher than the $199 will create a significant amount of revenue.
“We estimate the iPhone and related revenue accounted for about 51% of Apple’s revenue in FY12 and will grow to about 54% of revenue in FY13,” said Barclay PLC.
The iPhone alone will be earning Apple roughly 48% revenue, which accounted for approximately 58% of the total profit earned this past quarter.
While it may seem that the iPhone is slightly over priced to some Apple users, Apple producers aren’t charging you much more than it costs to make it themselves.