iPhone prices are getting higher and profit margins are shrinking
What makes many fruit fans widely known is that the increasing price of the iPhone has almost become a topic that Apple has been complaining about in recent years. In September last year, Apple released its most expensive mobile phone at the time, the iPhone X, and its 256G version was priced at 9,688 yuan. In September of this year, Apple set this record again. The price of the 256G version of the new iPhone XS MAX reached 10,999 yuan, and the top-end 512G version reached an unprecedented 12,799 yuan.
The price of the iPhone has been getting higher and higher, which makes people feel that Apple is more and more profitable, but the data of the research institute shows that the increase in the price of the iPhone has not brought higher profit margins, on the contrary, its profit margins are still decreasing. According to data from Canadian research institute TechInsights, the profit margin of iPhone has dropped from 74% of iPhone 3GS in 2009 to 60% of iPhone XS now.
Although the price of new iPhones since the iPhone X has topped $1,000, the higher prices have not resulted in higher profit margins. Such high prices are because Apple has added more new technology and higher quality to the iPhone. Components squeeze Apple's profit margins.
Although the profit margin of the iPhone XS is not as high as 74% at its peak in 2009, its 60% profit margin is not the lowest. The lowest iPhone profit margin is the iPhone SE launched in March 2016, which starts at 399 $186.70 in parts cost and a 53% profit margin. In its heyday, Apple earned 74 cents directly for every $1 of iPhone it sold.
But don't think that Apple has been losing money. According to data from investment banking firm Canaccord Genuity, although Apple's iPhone shipments account for less than 20% of the industry's total shipments, it accounts for 87% of the industry's profits.
In addition, the increase in the unit price of mobile phones has also greatly increased Apple's profit on each mobile phone. A $600 iPhone 3GS 10 years ago earned $444; now a $1,000 iPhone XS is $600.
Although profit margins have fallen, the money in Apple's pockets has not decreased at all!
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