| Cult of Mac

iPhone X may not be quite the money spinner you expect


iPhone X
Despite high price, iPhone X could have lower profit margins for Apple.
Photo: Apple

With a starting price of $999, the iPhone X may be Apple’s most expensive iPhone yet, but that doesn’t necessarily make it its most profitable.

In fact, according to a new report, Apple could actually make a smaller profit margin on the next-gen flagship phone than on previous handsets, due to the increased cost of components.

Apple rakes in $513 for each iPhone 6s Plus it sells


Apple makes some impressive margins on the iPhone 6s.
Photo: Killian Bell/Cult of Mac

According to analysis from research firm IHS Technology, the iPhone 6s Plus costs Apple an estimated $236 to make — but nets the company an impressive $749 when it goes on sale.

That’s $513 markup per handset, if you’re keeping track at home.

iPhone 6 preorders may be up, but profit margins are down


Big and bigger. Warning: profit margins may vary. Photo: Apple.
Photo: Apple

Apple might have smashed its record for preorders with the iPhone 6, but according to a new report from Credit Suisse analysts, profit margins are actually down for the device.

The reason for this is that Apple’s quite literally giving users more for their money: an all-around bigger iPhone which still costs just $649 for its base model.

Production for Apple, however, is considerably more expensive — with the biggest costs being the larger display, improved camera, bluetooth, Wi-Fi and GPS chips.

New MacBook Airs Are Apple’s Most Profitable Notebooks Yet, Say Analysts



One of the little secrets that has made Apple the most profitable company in tech is their ability to achieve high margins on their gizmos, but the new MacBook Airs might set a record even for Apple: according to analysts who have estimated its bill of materials, the entry-level, 11.6-inch MacBook Air costs only $718 to make.

That means that for every 11.6-inch MacBook Air Apple sells, they make $281, a profit margin of 28.1%. That’s for the 64GB: buy yourself a 128GB MacBook Air and the profit margin jumps to 34%. Buy a 128GB 13.3-inch MacBook Air and that margin nudges forward again, this time to 37%.

Those margins are excellent, even comparatively: Apple, on average, achieves a profit margin of just 20% on the rest of their laptops.