Though Apple is tight-lipped about the profitability of its individual products, a court filing in the company’s ongoing lawsuit with Samsung has revealed that the carrier-subsidized iPhone has margins north of 50 percent, nearly twice as high as the iPad.
Firtsly, according to filings dug through by Reuters, as far as the iPhones sold between April of 2010 and March of 2012 are regarded, Apple’s gross margins were between 49 and 58 percent. On the other hand, for iPad, margins were between 23 and 32 percent during the same span.
Due to these numbers it is now more obvious how important is in fact iPhone for Apple. iPhone sales last quarter were up 28 percent, a number lower than investors had anticipated, while the lower-margin iPad reached record sales of 17 million units. As far as Apple is concerned, the majority of its sales are only due to this iPhone.
Apple Chief Executive Tim Cook was questioned about carrier subsidies during his company’s quarterly earnings conference call earlier this week. He sustained that his company would continue to focus making “the best products in the world,” and that he is confident carriers will want to continue subsidizing the cost iPhone for their subscribers. Though the iPhone typically carries a higher subsidy than competing smartphones, Cook said Apple’s handset attracts more loyal customers who are more likely to buy new features that benefit carriers, like shared data plans.
“We’re going to focus on making the best product, and I think the carriers will be very motivated to make sure they provide them to the customers,” Cook said.