The newly announced Apple iPhone should generate profit margins of up to 50 percent for the company, according to industry analysis.
Estimates are that the four-gigabyte unit will cost $245.83 to manufacture, and will retail for $499. The eight GB model will cost $280.83 to make and will retail for $599.
The single most expensive part will be the 3.5-inch LTPS touch screen, with a cost of $33.50. The combined cost of the NAND-type flash memory chips will cost $35 in the four GB model and $70 in the eight GB model.
According to data from iSupply, the high profit margin is typical for Apple, with the company seeing margins of 45 percent and more for products like the iMac and iPod Nano.
iSupply developed its estimate based on an analysis of the capacity and features of the iPhone, as well as information from materials from Apple, company sources and third-party publications.
Apple will offer the iPhone through mobile-phone provider Cingular Wireless, which is expected to sell the music phone at full retail price.
