Although the 3G and GPS chipsets in the new model add to its cost, Apple is saving on other components. The display that Apple paid an estimated $60 for last year, may be costing half as much this year, thanks to a learning curve and engineering changes, reports Fortune Magazine. The $100 Apple is charging for the extra memory in the $299 16GB model, probably is only costing the company $20.
AT&T and the other carriers could be subsidizing the $199 sale price by $200, according to Piper Jaffray’s Gene Munster, which means Apple may be charging its partners as much as $399 per phone.
As much profit as this new phone may generate, I believe if Apple sold the phone to anyone unlocked at $399.00, they would make even more profit. People would easily pay it. Pre-orders on eBay were fetching $500.00+.
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