Apple’s gross margin for iPhone sitting around 50%

Jul 27, 2012
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Apple’s gross margin for iPhone sitting around 50%

Anyone who follows tech and gadget news knows that Apple doesn't like to talk about its margins on its individual devices, but thanks to a court filing recently unearthed by Reuters, we now have a better idea of what they are. According to the court filing - which includes a statement from an "Apple expert witness" - the company enjoyed a gross margin between 49 and 58 percent on the iPhone between April 2010 and March 2012. That's a ridiculously high margin, which gives us a better idea of why Apple never wants to talk about the subject.

Apple's gross margin on the iPhone far outpaces the margin it was getting on the iPad between October 2010 and March 2012, with the gross margin for the iPad only climbing to between 23 and 32 percent. During that period, Apple made $13 billion on iPad sales, compared to the $33 billion it made on iPhone sales. The gadget-loving public may currently be going crazy over the iPad, but these numbers show that the iPhone is still Apple's money maker by far.

The iPad may leave something to be desired when it comes to individual margins, but when working as part of a whole, the iPad helps deliver healthy company-wide margins. Still, this is probably going to be the only look we get at gross margins for individual Apple devices for quite some time, so savor it while you can. Be sure to check out our story timeline below for more information on Apple's products and the company's recent earnings!


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