iPhonAsia comment to AAPL investors: Aver. Selling Price w Subsidy $499 – $224 (iSuppli cost est.) = $275 profit x total iPhone unit sales will be coming to Apple’s “free cash-flow.” While iPhone earnings may be accounted for over two-year period, cash-flow should not be over-looked. In many ways, Apple’s enormous cash-flow is a bigger deal than Apple’s income statement.
More > HERE
Analysts at iSuppli took apart Apple’s new wireless winner and found that the company knows how to strike bargains with suppliers
EXCERPT: Not only did Apple sell 1 million iPhone 3Gs in three days, but the company is making a healthy margin on each one sold. That’s the conclusion of researchers at market research firm iSuppli, who took apart the new device to learn who made what inside, and how much Apple spent on the parts.
The total cost of materials used inside the latest iPhone is $174.33, a dollar and change higher than the preliminary estimate iSuppli made in June (BusinessWeek.com, 6/23/08), about two weeks before the phone was actually released. If the analysis is correct, Apple (AAPL) is spending about $53 less on materials than it did with the first iPhone, which iSuppli says costs $227 to make.
Full BusinessWeek article > HERE
See also related iPhonAsia posts > iPhone 3G maintains healthy margins