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why does apple can earn so much from iphone

What might be the hottest domain in mobile industry? Or put it in another way, what might be the most profitable domain in mobile market? Just take a look at the major trend and we can get the answer easily. Most of those IT companies are swarming to make out their own smartphones, either on their own or through the ally with conventional phone makers, which of course aggravate the fierce competition. Those convention phone makers have not only to confront their counterparts but also the mushrooming new competitors.

Not every one can make out a successful smartphone which can bring with a gigantic sum of money. It is not only an issue of finance and strength but more about the innovation and novelty. Only the really innovative and revolutionizing device can win out eventually and withstand the test of time and prevail in a long time. That is how iPhone has achieved: being the most popular, most competitive and most profitable device in this industry.

As for the iPhone owners, iPhone has brought them a way experience of using and viewing phone. With the help of those various and innovative iPhone accessories, they can enjoy more surprises that iPhone can work out. While on the part of Apple, they have made out a really awesome device, so they have earned a lot, the competitiveness has been strengthened and the company value has soared.

It is easy to figure out how Apple can earn from each iPhone due to the transparency of the cost of iPhone spare parts. Minus the necessary cost for development and assembly, then Apple is able to earn some hundred dollars when each iPhone is sold out. Most will agree that the iPhone is assembled in China is the main reason that Apple can earn so much from its products. As the main OED of Apple, Foxconn obtain very little from the manufacture of Apple products, such as iPhone and iPad. But it would be totally another case if the assembly line is transferred to the US. Since the success of iPhone is indispensable with those Apple suppliers and manufacturers, the most sensible for Apple is to urge its suppliers to improve the conditions of those numerous workers at the front line.


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