Try 28% ... (Apple is 23%.)
Or is this another attempt to equate the cost of producing Windows with the cost of stamping an individual DVD as part of a production run of 100 million DVDs?
http://ycharts.com/companies/MSFT/profit_margin
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16 GB iPhone 4 Component Costs Estimated at $187.51
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Try 28% ... (Apple is 23%.)
Or is this another attempt to equate the cost of producing Windows with the cost of stamping an individual DVD as part of a production run of 100 million DVDs?
http://ycharts.com/companies/MSFT/profit_margin
Is that a good thing for Apple customers though?
Yes. Companies without nice margins tend to do stupid things to cut costs in order to increase margins. Like when Dell thought it was a good idea to outsource their consumer PC support lines to India, and have those call-center employees give names like 'Bob', and 'George', as if that would disguise the accents that were often too thick for the unfamiliar to understand. (Strangely, they didn't seem to think it was a good idea for their corporate support staff, because those stayed in the US.)
Don't you dare put words in my mouth. I didn't say such a thing. You sound like on that may have a habit of using the terms "Be reasonable", "Can I just explain to you" and the ill fated "Everyone else says." Bah!
Those that quoted that price knows normal electronics mass production. To assume that Apple works like the rest of the business has been the death nail of many an outfit that parlayed with them. IMO, they are off by 50% of what Apple's parts cost is on the iPhone 4 when you deal with five million unit part commitments.
If any normal company would make the iPhone 4, they would probably end up paying just south of $200 per unit in parts. Apple is not a normal company that let's MBAs and other name brand university graduates run the gears. They know how to find better talent beyond common sense and reasonableness implemented as a spreadsheet.
This is what you said: "My guess is that the cost, at the million plus unit volume, is between $90 and $75." iSupplies number is $187.51. If you claim that the cost is between $90 and $75 when iSupplies number is $187.51 then you are claiming that they are a bunch of idiots. However, you have no evidence whatsoever that (a) iSuppli hasn't taken into account the number of iPhones that Apple orders when calculating their price estimates, that (b) Apple pays 50 percent less than a company with smaller orders, and that (c) Apple's order is actually large compared to orders from other companies. In other words, a guess. "Words will be interpreted as taking their ordinary, contemporary, common meaning"; that's the rule that the US Supreme Court uses, so that's good enough for me.
Sure.
R&D
Advertising
Patent protection
Returns & Replacements
Warranties honored
iOS development
slowly gobble up quite a bit of money!
Wow, I feel really stupid. I had one 0 to many.
I'm going to sit in a corner and remember why I didn't do well on my Math final.
I'm going to sit in a corner and remember why I didn't do well on my Math final.
$30 iPhone data plan + regular calling plans include the device cost. In short, most of them are overpaying. The MOST ridiculous thing in the US is we guys pay for receiving a call! So, there's all the money the providers make for the phone.
+
600 text messages contain less data than a 1 minute phone call
source: http://voices.washingtonpost.com/posttech/2008/09/lawmaker_consumer_group_demand.html
Books, magazines, software downloads, music CDs, soda pop at the burger joint, popcorn at the movies, front row tickets at the symphony (which don't take any more square footage than the much cheaper seats). And etc.
Magazines are paid for with ads I'm pretty sure, the rest is about right. Phones are for the most part like that I am sure Apple goes for higher % than anyone else. I know some of those Laptops have a nice markup on them especially the 1800 dollar MBP. Hell Jobs is going easy on his fanbase, he could try to double prices and probably still sell a lot.
Pixie Dust for all
Well said Mugambo. R&D in particular - think how much $ Apple spends on developing and the integration technologies into the iPhone.
I'm happy paying for the above. Although each year the iPhone becomes that little more unfordable and I don't just mean from inflation, but heck, I'm due a payrise
Wow.
In the UK its £499 for the 16GB, take off the VAT and you're looking at about £410. So the component cost of the phone is £125, I wonder where that £286 ($430) goes?!
This baby drinks 3000 lbs of jet fuel per hour...
http://www.tuaw.com/2005/05/19/spy-shots-of-steve-jobs-gulfstream/
Try a pumpkin from the supermarket....
The supermarket buys from the farmer @ a dollar per ton...
The supermarket sells for 2 dollars kilogram.
The funny thing is that luxery items are cheaper then they have ever been, think of a computer in the 80's a Apple II cost what...$10,000? In the mother ****ing 80's!!! Thats thirty years ago... Today you can buy a Apple Computer for 2,000 that is a million times faster and better then those computers ever were.
Watching a documentary called "Maxed Out" which you can find the whole thing on Youtube, shows that comparably, we make less then our parents did (taking in inflation of course) and luxery items cost less, while items we need such as clothes, food, cars, houses cost more then they ever did.
We live in a sea of cheap luxery goods. The thing is, our money is worth less then ever and we are making less compared to the cost of living. Thats why we all know a friend who doesn't have a car, and rents but has a ps3, big screen tv and a iphone.
Watching a documentary called "Maxed Out" which you can find the whole thing on Youtube, shows that comparably, we make less then our parents did (taking in inflation of course) and luxery items cost less, while items we need such as clothes, food, cars, houses cost more then they ever did.
We live in a sea of cheap luxery goods. The thing is, our money is worth less then ever and we are making less compared to the cost of living. Thats why we all know a friend who doesn't have a car, and rents but has a ps3, big screen tv and a iphone.
Try a pumpkin from the supermarket....
The supermarket buys from the farmer @ a dollar per ton...
The supermarket sells for 2 dollars kilogram.
I don't know of many local supermarkets that sell tonnes of pumpkins. I can see supermarket chains buying tonnes of pumpkins, but not the Safeway that's 4 blocks south of the house.
If you're right about the "$1/ton" figure (which seems very, very low), you're still ignoring the overhead of getting the pumpkins from the farm to the store, cleaning them, setting up the displays, ....
The "markup" needs to reflect merchandising and transportation costs, not just the price paid to the producer.
Yes exactly... Apple have marketing, patents, freight, taxes, levies... but at high volumes they get a discount.
Yawn,
Always funny these isuppli people.
Always the same arguments and postings.
What does anybody even do with that info?
I am not planning to make my own iphone, so who cares what it costs?
Buy one or not at the given prices. (I am on not , waiting for 64 GB minimum)
Can't take ATT upgrade offer (Generous to wave $ 18, LOL) to renew for 2 years, by then (2012ish
we should have 128 GB with 1024 processor and 3D retinas and eye repair kits. JK.Also they promised 3 G in my area for October, don' think they will.
The margins the last time I had a look on the devices is around 30%. The amount retailers get isn't all that high when compared to the margins they get for selling HP, Dell and Acer in retail stores. You tend to find that Apple want to keep as much of the profit in house by controlling as much of the chain to the marketplace as possible.
As for the person going on about AT&T getting at a cheap price - get a clue, they purchase it at the same whole sale prices as as everyone else in the market, they don't get it at $188 per unit. AT&T subsidise the phone and make it up through locking people into a contract for several years - which is why I laugh at people who think they're getting a 'great deal' when they purchase a contract phone for $199.
I've lurked around here for quite a while now, but finally decided to take the 30 seconds to register...
I don't care about the original price of the phone or anything, but $199 to replace my cracked screen on my 3G and the retina display costs $28?
I don't care about the original price of the phone or anything, but $199 to replace my cracked screen on my 3G and the retina display costs $28?
I've lurked around here for quite a while now, but finally decided to take the 30 seconds to register...
I don't care about the original price of the phone or anything, but $199 to replace my cracked screen on my 3G and the retina display costs $28?
I don't know how long it takes or what normal charges would be (auto shop is now over $100/hour), but there is labor to take apart and put back together in the shop. Their 3GS report shows $35 for the screen. (2 parts, LCD & touchscreen portion)
Do you pretend not to understand the simple things, or you wanted to say something irrelevant anyway I can't tell which.
Does anyone here work in manufacturing or sales?
An industry standard multiplier for a product that does NOT require R&D is 2.9. That pays for employees, advertising, distribution, stores, insurance etc. Products with heavy R&D varying but a normal multiplier is around 4.0. I am truly blown away by how little the multiplier is on the iPhone, when you consider the amount of advertising behind it, and the fact Apple has it's own B&M stores all across the country. I guess ATTsupsidies and insane sales rates can allow for that.
An industry standard multiplier for a product that does NOT require R&D is 2.9. That pays for employees, advertising, distribution, stores, insurance etc. Products with heavy R&D varying but a normal multiplier is around 4.0. I am truly blown away by how little the multiplier is on the iPhone, when you consider the amount of advertising behind it, and the fact Apple has it's own B&M stores all across the country. I guess ATTsupsidies and insane sales rates can allow for that.