The cost of an iPhone

The cost of components and assembly of a 32GB iPhone 3GS is $170.70 (source: The Economist, January 2010). Based on current retail prices you can probably work out how much profit you think Apple makes on each of these. However, the company still needs to cover its costs of research, product development, marketing, patent fees, retailer costs, etc. An understanding of fixed and variable costs, and how these costs behave, is critical to the running of any business. A number of our finance courses develop an understanding of business costs. Have a look here at a sample programme, or visit our Business & Finance Courses page to see a wider range of programmes.