Sunday, January 21, 2007

50% Margins on iPhone?

Apple phone is expected to cost $600. Cingular (at&t) won't be allowed to discount it. The cost to manufacture an 8 Gbyte iPhone is estimated to be about $280. As iTunes exists to sell iPods, so now mobile service exists to sell iPhones. True, as Steve Ballmer, Microsoft CEO points out, iPhone doesn't have a keypad, so text entry might be a bit of a chore. Still, this device is going to get lots of attention, and sales, from professionals, engineers and other people who just think it is the coolest phone on the market.

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