Profitable product:

iPhone
> Operating margin: 40%
> Revenue: $80.5 billion
> Market share: 20.9%
> Industry: Computer hardware

The iPhone is by far the most successful product Apple sells. Of the company’s $156.5 billion in worldwide sales in 2012, $80.5 billion came from the iPhone alone. Apple sold more than 125 million units last year, a 73% increase from 2011. In contrast, Apple sold 58.3 million iPads that year, generating just $32.4 billion in gross revenue. Each iPhone is far more profitable than each iPad, the company’s second best-selling product. According to documents released as a result of the patent lawsuit between Apple and Samsung, Apple’s gross margins on the iPhone were between 49% and 58% from April 2010 to April 2012, nearly double that of the iPad. This is partly because of larger revenue due to carriers that subsidize the iPhone heavily — an average of $425 per unit according to a recent Stifel Nicholaus analysis. Because of this fact, we calculate the iPhone’s profit margin is 40% — even higher than the entire company’s 35.3% margin.

Read more: America’s Most Profitable Products - 24/7 Wall St. http://247wallst.com/special-report/2013/05/03/americas-most-profitable-products/#ixzz3YWB19gKS
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