just look to the luxury market (e.g. high end watches that cost as much as a house, etc.), where 1000% markups are on norm
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16 GB iPhone 4 Component Costs Estimated at $187.51
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just look to the luxury market (e.g. high end watches that cost as much as a house, etc.), where 1000% markups are on norm
I agree these electronics shops that sell tvs, cameras and cables, etc are making too much profit and thats why they are closing down, too much money! (sarcasm)
Look at posts #2, #3, #6, #7, #12 and so on. Then tell "us" who the "we" are who read the article.
Because there are at least 12 different people chiming in with "What? The iPhone only cost $187.51 and yet they're charging $600?! What a ripoff!!" and the like.
Was that some kind of defense of Monster Cable?
If so, sorry, there really is no excuse for the way they sell these products. Big Box retailers all but brainwash employees to tell customers that a cheaper HDMI cable (for example) will provide a poor picture (a favorite trick is a demo of HD vs. non-HD) relative to Monster Cable. I'm cool with markup in exchange for convenience; I'm not cool with lying salesmen. $40 is a plenty reasonable price for cables at a store (considering that the profit margins on the actual devices are often razor thin). $150 is inexcusable.
And they're closing down because they're being outdone by competition.
*Online; more efficient businesses like Best Buy and Walmart.
Any quotations for that?
So in other words, the numbers that iSuppli provided are pure rubbish? And that is because you guess?
Couldn't you apply that logic to any software maker? Have you seen the cost of Final Cut Studio?
Is that a good thing for Apple customers though?
Yes, so they can spend more money on R&D, for products we can enjoy.
Xian Zhu Xuande: well said! unfortunately, we'll get this everytime issupli "estimates" the material cost of such devices... i'd like to see them "estimate" the total cost (r&d, etc.) of bringing each iphone from ideas to users' hands
sorry but
You dont know what your talking about. High end watches that cost as much as a house may have a high margin but these items are sort of a sample item that if your very lucky you might sell one or two a year.
The watches even high end ones that most people will buy do not offer a high margin for the retailer, in fact most retailers consider watches as complementary items.
You dont know what your talking about. High end watches that cost as much as a house may have a high margin but these items are sort of a sample item that if your very lucky you might sell one or two a year.
The watches even high end ones that most people will buy do not offer a high margin for the retailer, in fact most retailers consider watches as complementary items.
i like it this way
i'd rather get a TV for cheap and let the idiots buy up all the profit generating products and services
someone i know just spent $2000 on a $1300 LED TV. 4 year service plan, TV stand, tax, wifi and set up fee add up. i told him the deal about the plan and that the only positive is best buy will come out to look at it rather than you take it to the store
iSuppli does not claim to list all of Apple's iPhone costs -- just the cost of the parts. They make it clear that they don't even include the cost of assembling the parts. It doesn't make any sense to attack them.
MS doesn't get that much for a Windows license. the OEM prices that dell/hp pay are a lot less than retail
iSuppli's BOM estimates typically include a guesstimated assembly cost.
BusinessWeek claims that labor isn't included which is unusual for an iSuppli estimate.
Apple is doing well by these phones.
I do find it hilarious though. When the component cost of the Amazon Kindle was posted on this site, people attacked them as the most evil company ever. Apple has a higher markup and people jump on here yelling R&D, and Apple products are made with love, etc. lol
I so enjoy our unbiased boards.
I do find it hilarious though. When the component cost of the Amazon Kindle was posted on this site, people attacked them as the most evil company ever. Apple has a higher markup and people jump on here yelling R&D, and Apple products are made with love, etc. lol
I so enjoy our unbiased boards.
They have no way of knowing.
R&D is a separate line item under SG&A anyhow. It's reported quarterly and not broken down by product.
I dont even know them! I was talking generically.
Oh yes thats a good idea lets put everyone out of a job and let the Walmarts of the world take over. Squeezed margins, lots of dumping, and few badly paid workers.
Nice.
Yup cuz the component cost is all there is in making the phone
It magically designs, advertises, tests, ships, and manufacturers itself for free!!!!!!!!!
Yep. I stopped being surprised quite some time ago, though. On the other hand, it never ceases to amaze me how irrationally Apple users can respond to some things. I guess that's a side affect of caring so much about a product? You become emotional about it? I wonder if HP and Dell feel blessed that nobody cares enough to examine their products and statistics in detail.
True, works out for me too.
Yep; that's the store's bread and butter. I will at least point out that extended warranties are not always a bad thing. It can be very hit and miss on something like a television, but I would recommend one to almost anyone who buys portable devices with moving parts (e.g. portable DVD players; laptops), and especially so if they have kids. I actually got one on my own television (the price was very competitive compared to the one offered through the manufacturer) and it has since paid for itself twice over. It helps to make sure it is a good warranty too. A Best Buy 'Product Replacement Plan' from Best Buy on the original XBoxes turned into a source of much happiness for many customers, I'm sure. But people shouldn't buy them on products which aren't prone to malfunction...
So you'll pay Best Buy $150 for a <$5 cable because you're afraid of the "Wallmarts" taking over? Just because a company has a higher profit margin doesn't mean they treat their employees any better...
At no point did I say I support the business model of places like Walmart. In fact, I refuse to shop there on grounds of principle. But it is the fact of things. Electronics stores need to find ways to compete with places like Walmart and Amazon or they're going to go away. And consumers should think a little bit about the vote they're making with their money when they decide where to spend it in order to save a buck.
Although I do very much like Amazon.