Even at that though, Apple typically guns for margins of 20-25%... it's still going to be a great add to the bottom line. The question truly is whether or not this has been fully figured into the stock price. Look at RIm.... we've seen a move from $175 to $213 or so in 2 days.... I think there's more room for apple to move...
Ok, 20-25% margins. Let's say it costs them $100 to make the phone (I'm sure this is a bit low). So they make $25 on each phone? Let's say $200, and then margin is $50. That's one-tenth the number quoted in the thread subject.
Depends how you look at it, I wasn't clear in what I was referring to as margins.... Apple tends to go for a total margin after all expenses of 20-25%, where other tech companies in the PC markets tended to aim for 8-10% (ie, dell, hp, etc) In this case, after apple takes all costs into account, including marketing, sales, salaries, etc, it aims for around 20-25% profit....
apple sells Iphone for double its production cost http://www.bloomberg.com/apps/news?pid=20601087&sid=amXGY6M1IQGk&refer=home
Sell the news !!! This was a stupid market for Apple in the first place and typical of a company with too much cash and forced to spend it. Sell the heck out of it because it will blow up in their faces long term.
Depends how you want to look at it. Technically "contribution margin" is the products contribution prior to overhead expenses.... What I meant to imply is that historically apple after all costs are factored in tries to aim for an overall margin of 20-25% on products, compared to the rest of the pc industry working with a lower margin. Shouldn't have used misleading terms.