Tuesday, February 7, 2012

Apple Earnings From iPad, iPhone

The iPhone brand has definitely proved itself, enough so for each iPhone unit to earn more that each iPad. Definitely, it costs more for the iPad to be produced with similar internals with the exception of a larger display and battery. Carrier subsidies for the iPhone provide a lower price to the consumer, with a 2-year contract.  The table below was created simply by taking the $9.15 billion earned by the iPad last quarter, and dividing it by the 15.4 million units sold to arrive at an average revenue of $594.16 last quarter per iPad.

The iPhone unit revenue was calculated similarly with the $24.42 billion in revenue being divided by the 37.1 million iPhone units reported this past quarter. The iPhone revenue-per-unit was $658.22, or over $66 higher than the iPad. The iPad 2 is being produced for around $300, giving Apple ample profit margin.

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