Ina Fried

Recent Posts by Ina Fried

Guess What? Apple Now Takes in More for Each iPhone Than for iPad

Although the consumer pays anywhere from two to three times more for an iPad than for an iPhone, Apple actually takes in more revenue, on average, for each iPhone sold than for the larger tablet.

The difference, of course, is that the iPad is sold unsubsidized, while phone carriers typically pick up a good chunk of the cost of the iPhone–money they earn back a little at a time on each monthly phone bill.

But, when you look at what Apple gets in revenue per unit, Apple now gets slightly more revenue, on average, from the iPhone than it does from the iPad.

On Tuesday’s conference call with analysts, Chief Operating Officer Tim Cook said Apple’s average revenue per iPhone is about $625, while the average iPad revenue is closer to $600.

The figure for the iPhone has been growing in recent quarters and is up from an average of $595 six months ago. By contrast, average iPad selling prices have dropped, from about $640 in the April-to-June quarter to around $600 in the just-reported October-to-December quarter.

It will be interesting to see whether the current trends continue and how the numbers shift around when Apple introduces the next iPad and iPhone.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work