The iPhone's amazing margins

Peter Burrows

Just to take a moment away from backdating and trademark spats, here's some initial thoughts about the likely profitabilty of the iPhone. I called David Carey, president of Portelligent, which does competitive technical intelligence--another way of saying it tears down products and then advises clients on their costs and likely gross margins. He says the iPhone is looking like a major money maker, on a per unit basis. “It will have very good margins," says Carey, who has yet to try to come up with an exact figure. “They’ll end up being among the best in the [cell-phone] business."

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