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BlackBerry Bold: RIM profit margin

As BlackBerry RIM and Apple iPhone go head-to-head in the sales race, we thought we would take a closer look at the Bold and how much it costs to put the smartphone together.

We have looked at market research from a company called iSuppli who did a tear down analysis of the Bold. Firstly looking at the materials and parts it takes to make the Bold they put the cost per unit at $158.16 with putting the Bold together and testing adding $11.25 giving a total cost of $169.41.

The BlackBerry Bold is already available in Canada, Britain, India and France and a few other markets and is set to launch in the US on AT&T and it will set you back around $300 for the phone and two year contract.

RIM definitely spends more on its components than iPhone if we are talking about the newer BlackBerry’s. But as to the profit margin on the Bold, if we say the Bold will be on sale for $350 taking away the cost to make it, RIM would be looking at a 45 percent gross profit margin.

Source: businessweek