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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 (opens in new tab), £1080 for a 24 month contract (opens in new tab) in the UK, 1520 Euros for the same period in France (opens in new tab) and 1348 Euros in Germany (opens in new tab).

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

Désiré Athow
Contributor

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.