• Information Week, Tuesday, July 3, 2007 10:45 AM

At $500 an iPhone, how much does Apple make per model? Analyst firm Portelligent said a quick study of the smart phone reveals that its parts cost $200 for the $500 iPhone and $220 for the $600 - which makes it an expensive device, because those prices are for parts only, not labor.

Those are also initial estimates, says Howard Curtis, Portelligent's vice president of global services says. "When we finish, we will have less of a guesstimate and more of a solid estimate."

The Portelligent exec echoed most reviewers in praising the device, which various estimates report sold around 500,000 units in its first weekend. Curtis said consumers shouldn't feel bad about paying so much for such an innovative device. The parts are expensive because they're state of the art; soon, those costs will go down, and so, too, will the cost of the iPhone.

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