How Much Does Apple Make On Every iPhone And iPad Sold?

It's no secret that Apple likes to maintain high profit margins on its iPad, iPhone and Mac products, but nobody knew just how much the company made for every device sold. Now thanks to Cupertino's patent vendetta against Samsung, we're privy to the details. Just how much does Apple make per iPad and iPhone sold?

According to documents sighted by Electronista, Apple made between 49 and 58 per cent back on every iPhone sold in the last two years. The iPad meanwhile had much lower profit margins of between 23 and 32 per cent in the two year period.

Based on some back-of-the-envelope maths, that means Apple makes between $172.48 (16GB new iPad Wi-Fi) and $287.68 (64GB new iPad 3G+Wi-Fi) for every iPad sold, and makes between $463.42 (iPhone 4S 16GB) and $579.42 (iPhone 4S 64GB) for every iPhone sold. No wonder it has billions in the bank. [Electronista]


    Does that include the money they make from app downloads or just handset sales only?

      This would be hardware only. They take 30% of app sales on top of that.

        To be fair, they don't make that much money off of that 30%. It pays for the cost of QA (ensure no malware or virus, nothing fraudulent, etc)

    They make so much profit because the fanboys can't help themselves..! They just gotta get the next hyper exy new piece of fruit.

      Yes. Every single owner of an Apple product is a fanboy.

      Every. Single. One. Keep up the logic Timmahh

        i love my macbook, hate the iphone.

      Can you think of something new to say? It's like you're a trained ape typing the same crap in every comment

        And you two idiots are getting your knickers in a twist because.....

          jeez don't tell me you're alt account #3 dude. that'd just be too sad.

      The world isn't divided into 'fanboys' and 'haters', its divided into normal people and nerds on the internet who think about people being 'fanboys' and 'haters'.

        Haha very true mate

    Now if we only could find out what their production costs are per unit...

    Apply charging alot of money of their product? WHY I NEVER!

    They price fix and are extremely anticompetive. Quite simple really. Where is the DoJ suit against Apple? They are the Microsoft of the Nineties.

      Since when is selling your products at a profit anticompetitive? That's just smart business.

        pretty sure he means things like the rediculous Samsung legal battle being anticompetitive. Why else would they be trying to get the devices taken off the market (hint: less competition)

        I don't think he was meaning they were anticompetitive because of their profits, I think he meant it has two separate statements. Ie, anticompetitive as shown by their constant legal battles with Samsung who are seriously threatening (and in some cases have overtaken) their market share.

    This should come as no surprise. The iPad was always competitively priced compared to the other high end tablets from Sony, Samsung etc and usually sets the benchmark for others to follow. However, the iPhone has always been horribly overpriced and is 1-2 years behind the competition. Charging double for out of date hardware is a great way to make $$$s

    ah yes, the black'n'shiny markup, invented by sony when the vaio came out....

    Does that include the cost of R&D, the cost of setting up the factories, paying for licenses for tech patents etc, or doesn't that matter?
    Is this simply straight profit after all of those costs have been accounted for?

      From the click-thru:

      "Neither amount includes marketing costs, or other related expenses beyond device production and packaging."

      That's what profit margin means doesn't it?

    I am not an Apple fan, but good on them for maintaining a high margin. That's the rewards of being the disruption which shapes an industry around you. That margin can't stay that high forever though. Apple's days of historic quarterly profits may come to an end soon. Doesn't mean they'll go out of business, they'll just cater to the minority who will pay more for a well designed experience.

    And lets not forget Apple basically created the iPad/tablet market.

      Umm, wut?

      Microsoft have been selling Tablet PC's since 2002. Look up Microsoft Tablet PC on wikipedia.

        Yeah, and to call them an unsuccessful joke would be a compliment. So yeah, there was no tablet market.

        Haha there is a big difference between making something for sale, and making anyone give a sh#t about it :)

          The only reason anyone gave a shit about the iPad was because all the iSheep wanted one. It's not even a big iPhone, it's more like a big iPod touch. I really don't understand the appeal of owning one. It doesn't have the functionality of a PC at all. The Tablet PC was actually a, well, Tablet PC, running a PC's operating system.

          Yeah, it tanked and didn't sell very well, but that's beside the point. My point was, Apple were hardly the first ones to come up with the idea.

          Theoretically at least, even 10 years ago the Tablet PC could have been capable of much more than the iPad (and other tablets on the market, not singling out just Apple) is capable of now, simply because it was in essence a PC in tablet form and not just a big phone minus the ability to make phone calls. Maybe we'll know for sure when the Surface Pro launches exactly what that kind of tablet PC is capable of. Maybe. I'll reserve judgement until I see it.

            Sorry Michael but the other guys are right. Apple certainly didn't invent the tablet but they did create the market, which was what the Bangers said. But I think it was just the right device at exactly the right time. It makes them look very clever but they have also had some equally spectacular flops. e.g. Few sheeple would realise that the iPhone was just a reinvention of a PDA product they made between 1993 and 1998. Newton was anything but successful. Even the first two generations of the MacBook Air were released too early - the hardware just wasn't up to it until Sandy Bridge.

              You know you're in for an intellectual debate when you're talking to people that use the terms 'iSheep' and 'Sheeple'.

              Michael, the whole point is that a tablet doesnt have the functionality of a PC. YOU might like PC's, use them for their processing power and complex input devices and understand them, if you do, you are part of a very very very small minority.

              The 'capability' of a modern tablet is not about CPU's and memory, its about app stores, user experience and developer communities.

    I switched from iPhone to GS3 last month to make a stand against the fanboys and the blind love they have for apple products....I'm blown away by the power, speed and design of the galaxy s3.

    Then today I downloaded mountain lion and bought an apple TV. Dammit!

    I assume those margins for iPhone are based on outright purchase price because telcos must be paying significantly less for contract phones. e.g. The reason I got a Samsung Wave is because it was actually cheaper to sign up for Virgin for a year, $24x12 months ($288), than to buy it outright (about $400 at the time). I'm sure Apple make a lot more on their phones but it would still be considerably less than full retail.

    But all that money isn't profit. Research and design costs, helpdesk, advertising, etc.actual profit could be quite low.

    I should read ALL the posts before replying. Yes I said exactly what said.

    And yet all those people working like machines at Foxconn are working long hours for miserable pay in miserable military like conditions to get you all a stupid new iDevice while Apple rake in the profits and continue to take advantage of this unfortunate condition. Y'all iPeepz must be so proud.

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