Do the Margins on Apple's New iPhones Measure Up?

The iPhone is the device that makes or breaks Apple (NASDAQ: AAPL  ) , plain and simple.

And with the newest line of iPhones having been on the market for several days now, it's abundantly clear that Apple has yet another winner on its hands. Apple announced that it smashed its previous records for debut-weekend iPhone sales with its new two-tiered smartphone lineup -- though Apple was playing a with a bit of a loaded deck.

And as is customary in tech cirlces in the wake of every iPhone release, analysts tear apart the newest devices to try to figure out just how much they cost Apple to make and assemble. The reason is twofold. First, it helps investors understand just how much money Apple makes off the sale of each iPhone, the all-important gross margin. It also helps analysts identify which companies landed their wares in these high-demand devices.

In the video below, Fool contributor Andrew Tonner looks at the recent margin analysis for Apple's new line of smartphones. 

Get smart
Do you know the major developments that could crush Apple? The secrets to success that could make investors like you rich? The answers are simpler than you think, and The Motley Fool is sharing them in a free report titled, "5 Secrets to Apple's Future." Inside, we outline critical information every Apple investor must know, so click here now for your free report.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2654835, ~/Articles/ArticleHandler.aspx, 4/23/2014 5:57:10 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.