1.7 million iPhone 4 Expected To Generate $1.7 Billion In Revenue

Apple announced yesterday that it has managed to sell a whopping 1.7 million iPhone 4 worldwide, a feat that means that the smartphone has become the company's most popular device ever, far outclassing the iPod, the iPad and previous iPhone handsets.

More importantly, our research shows that the iPhone 4 may well have generated nearly $1.7 billion worth of revenue for the company and its strategic partners, that's around $1000 for every phone, a cost that includes the price of the phone itself.

How did we get to that number? Well for a start, we assumed that half of the iPhone 4 sold were outside the US and the ratio of the 16GB model sold to 32GB one was 4:5 based on Piper Jaffray's research. The same document (here) also said that only a sixth of those buying the new iPhone were new customers (i.e. joining the network for the first time).

Based on the aforementioned assumptions, the average prices of the iPhone 4 contract in the territories where the phone is on sale are as follows : $1800 over a two year period in the US, £1080 for a 24 month contract in the UK, 1520 Euros for the same period in France and 1348 Euros in Germany.

The table below gives you a birds' view of our assumption. Prices are in dollars, converted using Google.