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16 GB iPhone 4 Component Costs Estimated at $187.51

StealthscrapE said:
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? :eek:
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It's $199 *installed*.

You can buy a timing belt for about $30, but it will cost over $300 to have it installed by a mechanic. Parts are different from - and usually cheaper than - labor. There's nothing even new about this.
 
gtgrad95 said:
I don't know any company that can get away with a 200+% markup on a product.
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Only counting the actual cost of the parts? MS buys disks for about a dime and sells them to you for $400.00, giving them a cool 400,000% markup.
 
alhedges said:
It's $199 *installed*.

You can buy a timing belt for about $30, but it will cost over $300 to have it installed by a mechanic. Parts are different from - and usually cheaper than - labor. There's nothing even new about this.
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Replacing the timing belt can take as long as 5 hours and in most cases you need a well equipped garage with a qualified technician.

The screen of the iPhone can be replaced in fifteen minutes by using a screwdriver. Labour cost does not justify the high price of the screen replacement.

Mugambo said:
R&D
Advertising
Patent protection
Returns & Replacements
Warranties honored
iOS development
slowly gobble up quite a bit of money!
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So far, Apple showed no sign of willingness to encounter any expenditure on recalling the iPhone if it turns out to be badly designed or defective.

When all items are messed up, they will do ANYTHING to deny the problem and come up with workaround.

I almost feel sorry for poor Apple Inc...


nah, I hope that they get to pay for their pathetic mistake. There you go, that's the price of the secrecy.
 
I don't believe it

Did they get this number based on the cost on purchasing these parts for a single phone? If yes, then the number is probably much less based on large production scale.
 
alexacker said:
Did they get this number based on the cost on purchasing these parts for a single phone? If yes, then the number is probably much less based on large production scale.
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Hmmm so given the economies of scale gained from manufacturing 1.7 million iPhones, do you think something like a $28 retina display may actually cost Apple $10 for example? Could very well be the case, but these numbers will never be released to the public as they're VERY industry sensitive and competitors would want an equal or better deal.

I'm more interested in seeing how much phones like the HTC Evo and Motorola's Droid X cost. Let's get some comparisons going here guys, otherwise the numbers mean very little.
 
alexacker said:
Did they get this number based on the cost on purchasing these parts for a single phone? If yes, then the number is probably much less based on large production scale.
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No, these are price estimates based on quantity orders. The iSuppli folks aren't that stupid.

LondonCentral said:
I'm more interested in seeing how much phones like the HTC Evo and Motorola's Droid X cost. Let's get some comparisons going here guys, otherwise the numbers mean very little.
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I don't think iSuppli has priced out EVO or Droid X BOMs yet. However, they have done Nexus One ($174) and Motorola Droid ($188). Feel free to use your favorite search engine to find those estimates. The original BOM analysis of iPhone 3GS was $179 as noted in the article.
 
LondonCentral said:
Hmmm so given the economies of scale gained from manufacturing 1.7 million iPhones, do you think something like a $28 retina display may actually cost Apple $10 for example? Could very well be the case, but these numbers will never be released to the public as they're VERY industry sensitive and competitors would want an equal or better deal.

I'm more interested in seeing how much phones like the HTC Evo and Motorola's Droid X cost. Let's get some comparisons going here guys, otherwise the numbers mean very little.
Click to expand...

probably about the same. i've looked at the flagship Android phones and they include more apps and functionality in the box than Apple does. you can buy it in the apps store, but with Verizon's Android phones a lot of it is already included
 
KnightWRX said:
Hint, the software on the CD has a development cost, which while a fixed cost, is very much a cost.
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Ding, ding, ding! Development cost.

Exactly the cost everyone here seems to conveniently forget when they criticize Apple's hardware margins, yet conveniently remember when they defend Microsoft's software margins.
 
Thunderhawks said:
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.
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Who's on the iSuppli pay role? :confused:
 
LagunaSol said:
Ding, ding, ding! Development cost.

Exactly the cost everyone here seems to conveniently forget when they criticize Apple's hardware margins, yet conveniently remember when they defend Microsoft's software margins.
Click to expand...

Just as you have conveniently forgotten that Apple has been bragging about their much higher margins, with billions more profit than other phone makers. :)

(Everybody also has R&D costs, but Apple is infamous for spending the lowest percentage of their income on it, compared to other major tech companies.)
 
kdarling said:
Just as you have conveniently forgotten that Apple has been bragging about their much higher margins, with billions more profit than other phone makers. :)
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It's called business success. Are you arguing that HTC and Moto don't have the same markups (build cost vs. sell price) on their hardware? Is it Apple's fault HTC and Moto can't sell as much high-margin hardware as Apple? Is it Apple's fault no one else had the brilliant idea to tie an app store to their smartphone device, creating a never-ending money machine? Is it Apple's fault no one else has created a device with the broad consumer appeal and must-have-it factor of the iPhone? I'm not sure why you should begrudge them their success. They seem to have earned it.

Oh, and last I checked, most smartphones sell at the same magical $199 price point, whether or not they have a fruit logo on the back.

kdarling said:
(Everybody also has R&D costs, but Apple is infamous for spending the lowest percentage of their income on it, compared to other major tech companies.)
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I think you meant to say famous. Again, business success. Spend less to make more. I think that's what people in business are shooting for. Is it some sort of badge of honor to spend a ton of money on R&D and reap a lower profit for it? You seem to imply that low R&D/high profit is some kind of crime. :confused:

I suppose we should blame Apple for the shortcomings of others in this market?

Oh, as for R&D percentage to profit, the only reason Microsoft's isn't through the roof is because they spend so much on pointless, unfocused money-burning exercises in a fruitless quest for cool (Xbox, Zune, Kin...).

I think you're still bitter about the Palm thing. ;)
 
Margins

kdarling said:
Just as you have conveniently forgotten that Apple has been bragging about their much higher margins, with billions more profit than other phone makers. :)

(Everybody also has R&D costs, but Apple is infamous for spending the lowest percentage of their income on it, compared to other major tech companies.)
Click to expand...

There also, Apple's "infamous" margins are exceeded by Microsoft in it's quest for billions in profit.
 
Since everyone else has really drilled home how off base your "I don't know how anyone can charge 200+% markup" comment was, I'll focus on what you said next.

gtgrad95 said:
I'm not complaining by any means. I'm just pointing out that if somebody can get away with it it's Apple because they make great products. Why do you think they can get away with selling $1000+ laptops when their PC equivalent with all the bells and whistles costs about half that?
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So you admit they make great products, yet think that they are pulling one over on us? How does that work?

Also, lets not begin with the pricing wars.

Want to know how Dell's crummy laptops get so cheap? Because not only are they in some cases selling known bad hardware (google it), they have sold out the customer by subsidizing portion of the cost of their product by allowing lots of third parties to preload their crappy software.
 
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