State of Telecom Industry in Pakistan

With the recent introduction of iPhone to China, there has been plenty of discussion about the high selling price. One must wonder what is the real price of popular smart phones such as iPhone and Blackberry. I extracted this info from an article.

• According to Shaw Wu, an analyst at Kaufman Bros, The iPhone’s average selling price is $611, and the carrier pays a subsidy that brings the price down to $99 or $199. He estimates that the iPhone’s gross profit margin is about two-thirds, so the device costs about $200 to produce.
• BlackBerry phones in the most recent quarter had an average selling price to the carrier of $345—and cost about $150 to make, Mr. Wu estimates.
• The new Palm Pre costs roughly the same as the iPhone to produce but sells on average at $455 to the carrier, Mr. Wu estimates. The customer pays $149.99.