This week Apple's disappointing financial results announcement sent shockwaves through the stock markets in both the US and Asia, with the lower than expected sales of the iPhone being a matter of concern for some.
The latest filing in the Samsung versus Apple case shows why the iPhone is so important to Apple’s bottom line. It appears that Apple’s gross margins from iPhone sales are a lot higher than the gross margins it makes from sales of its other wonder-product, the iPad.
Apple can see as much as 58% profit margin on sales of the iPhone, while the iPad can see as much as 32% profit margin, according to the filing.
Apple doesn’t typically disclose profit margin information, notes Reuters in its report.
It’s the high profit margin that Apple is able to make on the iPhone that has made the companies meteoric rise in value possible, Apple is the biggest company by market cap (currently $538.81 billion). It is the importance of the iPhone on Apple’s bottom line that has analysts and investors concerned.