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Apple’s margins on the iPhone 2x that of the iPad — Apple News, Tips and Reviews

Thanks to its upcoming courtroom showdown with Samsung, we get an unusual peek into Apple’s finances. Documents unsealed for next week’s trial detail the gross margins for Apple’s two most important products, the iPhone and iPad. it turns out that Apple’s iPhone margins, or the difference between selling price and cost, are nearly double that of the iPad.

According to the Reuters report:

  • Apple recorded $33 billion in revenue from iPhones between April 2010 and March 2012.
  • Its gross margins on the iPhone during that time period ranged between 49 and 58 percent.
  • From October 2010 through March 2012, Apple generated $13 billion in iPad revenue.
  • iPad margins were generally between 23 and 32 percent.

Apple doesn’t publicly break down its gross margins by product, which is why a peek like this is so tantalizing to customers, investors and competitors. these numbers help illustrate why investors care so much more about how many iPhones Apple sells – even though the price of the most expensive iPad is slightly more than the most expensive iPhone (unsubsidized).

These gross margins don’t translate to pure profit, since they don’t account for some other related costs, such as marketing and support. but, they do show that Apple has better maximized the difference between how much it pays to build an iPhone versus how much it can sell it for compared with the iPad — but, to be fair, Apple has been selling its smartphone for two and a half years longer than its tablet. still, these numbers reinforce that the iPhone remains the company’s mobile profit center and is far more important to its bottom line.

Apple’s margins on the iPhone 2x that of the iPad — Apple News, Tips and Reviews

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    Posted by admin - August 8, 2012 at 2:00 pm

    Categories: iPod, iPhone, Xbox 360   Tags: , , , ,

    The Secret of Apple’s Success

    The following video is part of our “Motley Fool Conversations” series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

    Apple recently has its developers’ conference, and it looks as if the big takeaway is that David Einhorn is right: Apple is a software company. CEO Tim Cook announced that Apple’s app center has had more than 30 billion downloads and paid out more than $5 billion to developers. That shows the incredible power of Apple’s network. Research in Motion, for example, is losing market share because it just can’t offer anything close to what Apple can. in a network, lock-in is a critical stage, and that seems to be Apple’s big secret. all of that great software content is what keeps people in the Apple network and is what will propel the company going forward. Apple’s shares are still an attractive buy today.

    If you’re one of the thousands of investors riding Apple to spectacular gains, you’re doing yourself a disservice by not looking across the whole variety of companies benefiting from the same trends that make Apple the most valuable company in the world. the Motley Fool has just released a free report on mobile called “The Next Trillion-Dollar Revolution” that details a hidden component play inside mobile phones that also is a leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here — it’s free.

    the article The Secret of Apple’s Success originally appeared on

    David Meier owns shares of Apple. John Reeves owns shares of Apple and Google. the Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, Microsoft, and Nokia. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. the Motley Fool has a disclosure policy.

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    The Secret of Apple’s Success

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      Posted by admin - June 21, 2012 at 2:00 am

      Categories: iPod, iPhone, Xbox 360   Tags: , ,

      Buy-to-Let Mortgages – Best Buys

      In the field of buy to let mortgages, best buys are not always easy to find. the information gathered here will help you when looking for and choosing the best deals.

      Brief overview

      The economy a few years back was seen to be better and stronger than it is now. because of the economic stability then, many investors bought property utilizing buy to let mortgages.

      A few years later due to the recession, the value of many of these properties has crashed. several lenders have been forced to close or rethink their screening processes, with the downturn in the economy causing mortgage lenders to reconsider how much they are prepared to offer, particularly regarding buy to let mortgages.

      Buy to let Mortgages currently Offered

      As lenders have become more stringent in screening for applicants, the amounts they are offering has also changed significantly. according to UK based research, only 5% of buy to let mortgages have remained from September 2007 to may 2009, with larger down payments required from the applicant. interest rates have also increased, also as a result of the economic downturn.

      Rental income is one of the major factors that lenders consider. the amount of rent that can be earned is generally viewed as the primary source of income. other sources of income for the property owner may also be noted.

      Offers of buy to let mortgages are usually made at up to three times the applicant’s salary with 50% of the estimated yearly profits taken from rent. When applying for this type of mortgage, the estimated profits taken from the rent should exceed 125% of the applicant’s other monthly loan payments.

      Types of buy to let Mortgages

      • Fixed rate Mortgage – as the name implies, the interest rates remain constant regardless of changes in the market forces.
      • Discount Rate Mortgage – payments are reduced depending on the length of time needed to pay back the mortgage.
      • Cashback Mortgage – the lender pays cash back when the applicant pays on time or upon completion of the repayment.
      • Flexible Mortgage – this type of mortgage allows the applicant to pay back with some consideration to their situation or ability to repay the mortgage.
      • Base Rate Tracker Mortgage – this tracks a central bank base rate.
      • Interest only or Capital Repayment Mortgage – with this mortgage, other sources of investment are used to pay off the mortgage dues. for this to be useful, the alternative investment must be large enough to cover the mortgage payment.

      Factors to consider When taking Out buy to let Mortgages

      When buying property for letting, it is important to be business savvy. Research on suitable property, its current and foreseeable value, the location of the property and whether there would be a good stream of tenants, as well as a list of possible responsibilities as the property owner, should all be taken into consideration.

      When looking for buy to let mortgages, best buys should not be difficult to find as long as you have a firm business plan and continue to treat the property being let as a business.

      Buy-to-Let Mortgages – Best Buys

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        Posted by admin - November 26, 2011 at 4:00 am

        Categories: iPod, iPhone, Xbox 360   Tags: , , ,

        Treasurys extend losses after 5-year auction

        By Deborah Levine, MarketWatch

        NEW YORK (MarketWatch) — Treasury debt sold off Tuesday, pushing 10-year yields up by the biggest margin in two weeks, after the government saw very little demand from investors for its auction of 5-year notes, which came at the highest yield since April.

        Analysts said very thin trading conditions exacerbated the scarcity of demand, while bonds had been under pressure in earlier trading even with a weak pair of U.S. economic reports and the Federal Reserve’s latest purchase of government bonds.

        It was “a disappointing auction by any measure,” said strategists at Nomura Securities.

        Yields on benchmark 10-year notes /quotes/comstock/31*!ust10y (UST10Y 3.32, +0.03, +0.94%) , which move inversely to prices, rose 14 basis points to 3.48%, briefly spiking to 3.49% after the auction, also the highest level in two weeks. a basis point is one one-hundredth of a percentage point.

        Thirty-year bond yields /quotes/comstock/31*!ust30y (UST30Y 4.36, +0.02, +0.48%)  increased by 12 basis points to 4.53%.

        As retail sales return, challenges Grow

        American shoppers expanded their year-end purchases by the biggest margin since 2005, but heady challenges lie ahead for retailers.

        Yields on 2-year notes /quotes/comstock/31*!ust2yr (UST2YR 0.60, -0.01, -1.32%)  gave up earlier gains to rise 1 basis point to 0.75%.

        On Monday, 2-year yields touched the highest level since June, and the government sold new 2-year notes at the highest yield since May.

        The Treasury Department sold $35 billion in 5-year notes /quotes/comstock/31*!ust5yr (UST5YR 2.01, +0.01, +0.35%)  at a yield of 2.149%, the highest since April.

        The yield was also significantly higher than traders had anticipated just before the auction, according to CRT Capital Group.

        Bidders have offered to buy 2.61 times the amount of debt sold, compared with an average of 2.82 times at the last four sales of the securities.

        Indirect bidders, a group including foreign central banks, purchased 35.6%, versus an average of 43% in recent sales. Direct bidders, a group which includes domestic money managers, bought another 6.2%, and compared with an average 11.2% and the lowest proportion since November 2009.

        when a higher proportions goes to direct and indirect bidders, it’s considered good for the bond market, because those buyers are more likely to hold the debt longer. Dealers, by contrast, tend to turn around and sell newly bought debt back into the market, pushing prices down.

        On Tuesday, the government attracted good demand, though mostly from dealers, at its sale of $35 billion in 2-year notes. See story on 2-year note auction.

        The final auction of the year will be of 7-year notes /quotes/comstock/31*!ust7yr (UST7YR 2.71, 0.00, 0.00%) , which go up for sale Wednesday.

        “With both the 2-year and the 5-year seeing very weak investor sponsorship this week, we are fairly bearish on the outcome for tomorrow’s 7-year auction,” said analysts at Morgan Stanley led by Igor Cashyn.

        Treasurys extend losses after 5-year auction

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        Posted by admin - January 2, 2011 at 11:00 pm

        Categories: New York City Jobs   Tags: , , , , ,

        3PAR Inc. (NYSE: PAR) sets record high due to Dell Inc. (NASDAQ …

        Dell inc. (NASDAQ: DELL) shares fell to 11.98, losing -0.03 (-0.22%) on the background of the new deal. 3PAR inc. (NYSE: PAR) shares rose in price to the maximum – 18.03 points, gaining 86.84% in early trading.

        Dell has signed an agreement to buy the manufacturer of solutions for data storage 3PAR. The transaction value is estimated at about $ 1.15 billion this 3Par investors will get $ 18 cash for each share of the company, which is almost twice the closing price of securities on August 13. it is reported that the terms of the agreement were approved by the board of directors of both companies. meanwhile, the completion of the transaction is expected by the end of this year.

        Igor Tringlers
        2010-08-16 16:16, Economics.

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        3PAR Inc. (NYSE: PAR) sets record high due to Dell Inc. (NASDAQ …

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        Posted by admin - August 16, 2010 at 1:00 pm

        Categories: News and Events   Tags: , , , ,

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