iPhone 6 Component Costs Estimated to Begin at $200, Samsung Supplying Some A8 Chips

isoft7 said:

Remember, all of these large corporations care for one thing and one thing only... money.

The rest is an illusion perpetuated by their own exclusive fan base.

Apple fans are convinced that Jobs and now Cook really care about them as people. And through that, want to provide their customers a personalized welcoming experience. The reality is, that's all imaginary. All they want is to turn huge profits, make their stock holders happy and keep their jobs for as long as possible.

*REALITY

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I'm afraid more 1 track mindedness.

I agree all companies care about money - if not they'd go out of business.

But a lot of good businesses care about other things too (not limited to Apple). Environment, improving worker conditions, making the best in class of a product etc. But as always they have to run a business make decisions based on running a healthy company, pleasing customers etc.

I think saying "one thing and one thing only... money" is a bit too black and white - there is a lot of grey in running any company. It's all about balance.

A good example is telling some investors to get out of Apple Stock if they only want profits - http://www.theguardian.com/environm...ok-climate-change-sceptics-ditch-apple-shares

But you seem stuck with an opinion and you're entitled to it. But I suggest you research this further - not everybody is out to completely fleece you.

RockSpider said:

That's funny, I'm pretty sure if they put an Apple logo on a brick, it would sell in the millions, oh they already did, the iPad 3.

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Then I'm really amazed what the brick named iPad 3 I own is capable of doing all...

gmcalpin said:

Every single time, somebody has to make that utterly obvious statement, and every time they're just as wrong as you. Component costs are interesting to know. It's just not the whole story. But it's one part of the whole story that we didn't know before.

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Why?

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Gasu E. said:

Actually, there's no reason to jump through hoops to try to figure out how much profit Apple makes, as it is already calculated across ALL their products in their annual report. Apple makes a bit over 20% profit on their sales, which is quite excellent. It doesn't matter, or even mean that much, how much they make on each phone, as many of their costs are amortized across all their products.

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Right, Apple has practically no engineers on their payroll... finished designs just jump out of Jony's head onto the Foxconn assembly line.

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Buy we're talking about the iPhone.

MiWall81 said:

What about the programmers/designers/workers??? Whoever figured out these numbers needs to run a business for pity's sake... 69%!!!! I don't think so... The parts may cost up to $200 dollars, but the work that goes into programming/designing/building, changes a great deal as well...

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Exactly, the designers and engineers don't work for nothing!

Whilst I believe Apple makes a reasonable profit on the iPhones/iPads etc., I reckon they make far more money on accessories and MFI licensing. Their official cables and adaptors don't require anything like as many man-hours to design and develop as a handset or tablet but they are sold at pretty high prices.

0815 said:

and this does not even include the R&D that goes into those devices ....

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WOW... OK, most of you ****s have no idea how Economics work.

First of all, R&D is NEVER taken into account when it comes to the prices of the end product. It is what is called a sunk cost... meaning they have already spent the money for the R&D and wouldn't have done so if they weren't sure the product would be profitable at the sales point.

Secondly, Apple spends peanuts on R&D compared to Marketing. They have most of the important research done when the first iPhone came out and probably a bit more for the Apple Watch but once the base product is successful, they don't need to research as much on how to upgrade a camera or say a processor then when creating an entirely new product.

djnikk said:

WOW... OK, most of you ****s have no idea how Economics work.

First of all, R&D is NEVER taken into account when it comes to the prices of the end product. It is what is called a sunk cost... meaning they have already spent the money for the R&D and wouldn't have done so if they weren't sure the product would be profitable at the sales point.

Secondly, Apple spends peanuts on R&D compared to Marketing. They have most of the important research done when the first iPhone came out and probably a bit more for the Apple Watch but once the base product is successful, they don't need to research as much on how to upgrade a camera or say a processor then when creating an entirely new product.

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LoL. So wrong on both counts. I assure you that when we were pricing our microprocessors we sure as hell took into account the R&D costs for the fab and the product design. We didn't base our prices on the incremental manufacturing costs.

Maybe the parts costs 200$ - but Thats only the tip of the iceberg

iOS, advertising, design team, shipping, testing, creating, research and I could go on forever. Guess most people here have No clue about running a business #

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djnikk said:

WOW... OK, most of you ****s have no idea how Economics work.

First of all, R&D is NEVER taken into account when it comes to the prices of the end product. It is what is called a sunk cost... meaning they have already spent the money for the R&D and wouldn't have done so if they weren't sure the product would be profitable at the sales point.

Secondly, Apple spends peanuts on R&D compared to Marketing. They have most of the important research done when the first iPhone came out and probably a bit more for the Apple Watch but once the base product is successful, they don't need to research as much on how to upgrade a camera or say a processor then when creating an entirely new product.

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You sir are the ****. You Seem totally clueless #

tevion5 said:

With a contract you end up paying for that phone 3 times over.

199 for an iPhone? Try getting a new BMW for 2000

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If the iPhone is like a BMW than it must be the only BMW on the planet that a Walmart employee can afford.

winston1236 said:

If the iPhone is like a BMW than it must be the only BMW on the planet that a Walmart employee can afford.

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Walmart employees can spend their money on €100 toilet paper, doesn't mean they can afford it.

Isn't doing that for too many thing what caused the Great Recession of 2007?