Comments on: iPhone profits: Apple cleared estimated $330 million in three days

By: James Katt, Monterey, CA

James Katt, Monterey, CA — Thu, 17 Jul 2008 01:34:52 +0000

Apple also made money on the Applications it sold through the iPhone App Store on iTunes.

By: Rob, Anaheim, CA.

Rob, Anaheim, CA. — Thu, 17 Jul 2008 00:56:48 +0000

I guess the market has turned on Apple. They no longer like Apple. With the results of this past weekend, Apple should be close to $200 per share, regardless of the general economy news. Especially after the huge rally today, Apple barely moved 1% up. Results have everything to do with the stock price, not the fact that everyone's expecting it to go up so it won't (how foolish). Apple opened up $7 on Monday before the depressing economy news rolled in. RIMM got downgraded today and still went up 5%, makes no sense at all. I'm only guessing now, but I think the market is hanging loose on Apple until the earnings report on Monday. Would be wonderful to see Apple skyrocket on Monday. We'll see.

By: dave,tx

dave,tx — Wed, 16 Jul 2008 20:17:37 +0000

That's why Rimm is up 5% today becuase of all the money Apple is making.

By: Anonymous

Anonymous — Wed, 16 Jul 2008 18:57:08 +0000

The amount Apple made over the weekend release is less important than the estimated amount the iphone will contribute to next quarters results. If the same ratio of weekend to full quarter iphone sales occur with the 3G that occured with the original iphone release then we can expect a 4x improvement for an iphone contribution to the 4th quarter revenu(1.3billion).

Add to that deferred revenue of another 370 million from previous iphones sold and you have a grand wapping total of $1.7Billion. With Operating margins at 40%, the iphone will add $680 million to earnings or 0.79/Share earnings or $27/share (assumung PE=35).

Now that's what I'm talking about!!! So why has the stock traded down since the 1 Million sale announcement?

By: David, Dallas, TX

David, Dallas, TX — Wed, 16 Jul 2008 18:47:17 +0000

Has anyone talked about the fact that the 3g being "twice as fast" is bollocks. I had such high high hopes for this phone. But I live in the middle of Dallas where there is supposedly great 3g service, and I can't even get a 3g connection to the internet at all. So the question is, why am I being charged an extra $30 a month for a garbage service that doesn't even work as promised?

By: JD, Austin, TX

JD, Austin, TX — Wed, 16 Jul 2008 18:45:15 +0000

So, someone please tell me with this incredible product release, and new revenue chains just why the stock is down roughly $10 a share?

And it's not b/c this is already priced in, there was no major run on the stock after jobs announced it.

Just can't fathom how google's hanging up in the 500s and apple's been "mired" around 170 for most of the year.

By: Grumann, St. Louis, MO

Grumann, St. Louis, MO — Wed, 16 Jul 2008 18:07:38 +0000

If you are really looking at costs add in the extra staffing over the weekend at all the Apple stores.All hands on deck may equal 8 extra staff x 12 hours a days x 3 days x $15/hour x # of Apple stores = whatever….it's a lot. But they still are making a boatload of money and introducing a new mobile platform that will dominate the market.

By: zoom

zoom — Wed, 16 Jul 2008 17:57:32 +0000

..and that 1% is based on cost to consumer not cost to carrier with subsidy etc.

By: zoom

zoom — Wed, 16 Jul 2008 17:55:07 +0000

The profit margin is quite a bit higher as your estimate of a $50 royalty payment per phone is absolutely absurd, where do you get those number? That would mean some business/businesses made $50 million over the weekend, please.

I hold 8 US Patents and have licenses on 3 currently so I know of what I speak, there is NO POSSIBLE WAY Apple is paying $50 per phone in royalties.. IMPOSSIBLE, Apple doesn't even pay $50 per phone to have the actual phone built.

Based on typical royalty %s in this volume market of electronics Apple might be paying 2%, more likely 1%.

ex ped: The $50 royalty numbers came from iSuppli, as indicated in the piece. In an earlier teardown, done before they had the phone in hand, they used a similar number ($45). This is what Businessweek said about the royalties at the time:

Apple also has to pay about $45, or about 9% of the price of each handset, in royalties for patented 3G technologies, according to the iSuppli analysis. Chief among these collectors of royalties is wireless chipmaker Qualcomm (QCOM), who owns several patents related to a technology known as WCDMA used in the 3G chipsets. Others that may be collecting some royalties include Sweden's Ericsson (ERICY) and Finland wireless giant Nokia (NOK).

By: Bill, San Jose CA

Bill, San Jose CA — Wed, 16 Jul 2008 17:54:36 +0000

I want an iPhone 3G, but the 2 AT&T Stores I went to are sold out.. I doubt I'm alone.