Saturday, July 28, 2012

Apple's U.S. margins for iPad about half those of iPhone

As part of the myriad lawsuits between Apple and Samsung, Reuters reports that a statement from an Apple expert witness in a case going to trial in San Jose reveals Apple's margins on the iPhone and iPad. According to the statement, between April 2010 and the end of March 2012, Apple's gross margins on U.S. iPhone sales were 49% to 58%, generating revenues of more than $33 billion, while gross margins on iPad sales were 23% to 32%, generating revenues of more than $13 billion. The numbers reflect the fact that iPhone prices are heavily subsidized by mobile carriers, while most iPads are sold without broadband connectivity and are thus unsubsidized. Apple has chosen to accept lower margins on iPads in order to avoid creating a price umbrella for competitors.
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