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The price of an iPhone contract
Post on 2008-07-02 by Steve
Apple has announced they are selling the iPhone 3G for $200. Not bad right? Compared to the $600 price people were lining up to pay last August, $200 sounds like a bargain.
iSuppli, a market research firm, has suggested that the cost of manufacturing an iPhone is $173. This means that Apple is making only $27 on each iPhone sold. This may seem suprising, but it shows that Apple is hoping to make all its profits from cellular contracts.
Not convinced? AT & T has announced that they are selling a contract-less iPhone. The price? $600 (8 GB) & $700 (16 GB). Thats a $400 mark-up from the contract-bound iPhone. Clearly Apple is pushing its iPod & iPhone userbase to sign up for contracts.
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