iProfit: The iPhone Money Making Machine

While other manufactures have been around making cell phones much longer than the big Macintosh on 1 Infinite Loop which has only been in this game a short time, it is truly stunning to see profit numbers of a young company such as Apple.

By convincing then AT&T (Cingular before they were acquired) that Data was more profitable than voice and having a handset that no other carrier had, Apple was able to achieve an unheard of deal that no other manufacture could. Apple delivered a must-have device that brought customers to AT&T at higher rates and a sexy iPod/Phone/Internet  device which consumers had to have.

While Apple only account for only 8% of the cell phone industry revenue, it’s profit margin accounts for 32% of the total cell phone industry profit. Apple’s revenue stream is not the highest either. Several other manufactures like Samsung, Nokia, RIM and LG are bigger. But Apple’s profit margin of 40% is the highest of them all. The second closest is short by almost half with an operating margin of 20.7%, RIM comes in at second place.

The iPhone has done what no other phone could up until now; Apple wrestled the power away from the carriers and gave it to manufacturers, developers, and consumers.

[via ismashphone]