Apple 'makes $420 on each iPhone sold'

The 16GB iPhone 3GS only costs the company three percent more to make than last year's model, with a bill of materials totalling $172.46 plus $6.50 in manufacturing costs, says the company.

Apple's US carrier, AT&T, sells the 16GB iPhone 3GS at a subsidized $199, but industry watchers reckon that AT&T and other carriers cough up around $600 per phone. In the UK, Apple's carrier of choice, O2, sells a pay as you go 16GB iPhone 3GS for a whopping $719.85. [Read more...]