Each iPhone Makes Apple Twice as Much as Each iPad

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Posted July 27, 2012 at 8:26pm by iClarified

Apple's gross margin on the iPhone is twice that of the iPad reveals a freshly unsealed court filing in the company's battle against Samsung.

Reuters notes that the gross margin on the U.S. iPhone sales between April 2010 and March 2012 was between 49 to 58 percent. This generated more than $33 billion in revenue for Apple during that time period.

Between October 2010 and March 2012, the gross margin on U.S. iPad sales was between 23 to 32 percent. Apple generated more than $13 billion in revenue from iPad sales during that time period.

Apple's case against Samsung is set to begin July 30th. They are seeking $2.53 billion in from Samsung for allegedly copying the iPhone and iPad.

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Each iPhone Makes Apple Twice as Much as Each iPad

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Nitro Junkie - July 31, 2012 at 5:43pm

Of course they're gonna make more from the iPhone. For one they sell more iPhones than iPads, two apple charges the telco companies just as much or even more per iPhone than what they charge to personally buy an iPad in the store and three it's cheaper to produce the iPhone than iPad. The off contract unsubsidized iPhone prices are crazy. I might be wrong but isn't the 16gb iPhone 599 off contract?

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Russell - July 29, 2012 at 12:12am

The article states the margins are from iphone and ipad sales. Nowhere does it mention apps, so don't assume it does.

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iknowsomething.com - July 28, 2012 at 8:41pm

They didn't say on what is that margin made? Is it with apps or only hardware? If with apps, this difference make sense then, because iPhone is used more often than iPad during the average day, I'd say, thus spending more time for purchases decisions with it (especially if customers are bored commuters). I have more than 300 apps on my iPhone, since twice as less as on my iPad (180). Moreover, I have two iPhones in my family but one iPad. This analogy could explain that phenomenon.

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John W. - July 28, 2012 at 6:28pm

What do you expect? The phones are like double the price of comparable touches. It does not cost double for a bigger chassis and phone transmitters.

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m_thoroughbred - July 28, 2012 at 4:52am

Apple has nothing to do with the 2 year contract on iPhones that's all thanks to the carriers. 100% of the revenue the iPhone makes due to contracts is solely for the carriers profit margin not apple.

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iCrunch - July 28, 2012 at 5:43pm

Not true. Apple negotiated a portion of AT&T's data revenues for itself. That was the case for years during the exclusivity period anyway.

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iknowsomething.com - July 28, 2012 at 8:44pm

Absurd. I bought my both iPhones in Apple Store for full price :)

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m_thoroughbred - July 29, 2012 at 6:33am

that maybe so but there is no exclusivity anymore and the ipad wasnt out for most of that so you can't take that into consideration. but i could be wrong :)

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ken - July 28, 2012 at 3:26am

Its no wonder that the iPhone makes more money than iPad because of the ridicules 2year contract â¬66 a month over 2years that's a profit of a about â¬1200 , next thing Apple might introduce a 2 year iPad contract???? I wonder have they ever thought of that -because Apple loves money and sueing in court!

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