The iPhone is much more profitable for Apple than the iPad

By , Jul 26, 2012

Apple’s profit margins on its products are something of legend. Thanks to its massive supply chain influence and crack operations team, the company enjoys some of the best margins in the business.

This afternoon, some court documents surfaced from the ongoing Samsung-Apple trial showing that those margins are much better on the iPhone than they are on the iPad. In fact, they’re almost double…

Reuters reports:

“Apple Inc earned gross margins of 49 to 58 percent for U.S. iPhone sales between April 2010 and the end of March 2012, while gross margins on the iPad were much lower during much of that period, according to a court filing…

…Between October 2010 and the end of March 2012, Apple had gross margins of 23 to 32 percent on its U.S. iPad sales, which generated revenue of more than $13 billion for Apple, the filing said. Apple does not typically disclose profit margins on individual products.”

As 9to5Mac points out, this means that Apple makes about as much off of one iPhone, as it does on two iPads. That’s quite a difference, but unsurprising considering their production costs.

While the iPad costs Apple roughly $316 to build, the iPhone runs just under $200. Obviously that changes with wireless connectivity and storage options, but you get the idea.

At any rate, it’s an interesting tidbit — one of many we’re likely to see pop up in this Samsung-Apple trial. Especially since the judge denied requests for privacy from both parties.

  • Share:
  • Follow:
  • http://twitter.com/TrillxWave_ Ladooooo

    BREAKING NEWS

  • http://twitter.com/iphonejailbrea2 iphonejailbreak

    even the ipad make less profit for apple they wont give up this the tablets market

    • http://www.facebook.com/zacksloane Zachary Sloane

      duh?