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3 Million Phones * $30/case = $90 Million

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niuniu said:
You would have to be utterly ignorant to think that this costs Apple 90 million dollars! LMAO :D

Seriously, go out and get an education some of you!
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Ugh. He was referring to the fact that Apple lost potential revenue of $90M. The total cost to apple is more than just the manufacturing costs, it's the forgone revenue (the delta between manufacturing costs and retail costs after overhead) from the potential sales of the case.
 
OneMike said:
Yes, but in that case you're saying that 3 Million people got bumpers to begin which is not true. Way less.

Either way I agree. Lost revenue, just a way smaller figure than what you listed.
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It's not just bumpers they are going to be giving away....It's CASES. They said that they cannot produce bumpers fast enough. So they are going to give people the option of cases. If they aren't on the list, then you won't get a refund. If the case you bought is on the list, you will get a refund. If you don't, go down to your local Apple Store, and get your free case.
 
cocky jeremy said:
LOL @ the TS for thinking bumpers cost Apple $30 each.
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LOL at your ignorance for not understanding it's LOST REVENUE and that Apple has to refund FULL PRICE to those that already bought cases. Thanks for being a jackass. You make the rest of us look so much smarter.
 
KidStallyn said:
I'm not talking about the manufacturing costs, of course that's less....they have to REFUND the ACTUAL cost to people who've already bought cases. Yes, the full 30 + tax.

Future giveaways will only cost them the manufacturing cost. Either way, it's LOST revenue to Apple to the tune of what they WERE selling them for minus the manufacturing cost. HUGE!
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Okay I'll make this simple for you. Let m be manufacturing costs.

People paid $30 for this case so Apple's profit is $30-M. If Apple then refunds the 30 they are left with -m( the manufacturing cost.
When Apple gives these cases away the the future it will also cost them m. So -M.
They don't lose any more money than giving away the cases for free.
 
appleguy123 said:
Okay I'll make this simple for you. Let m be manufacturing costs.

People paid $30 for this case so Apple's profit is $30-M. If Apple then refunds the 30 they are left with -m( the manufacturing cost.
When Apple gives these cases away the the future it will also cost them m. So -M.
They don't lose any more money than giving away the cases for free.
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Yah...got that....it's still 90M that's not in their bank account yesterday had they NOT decided to give away free cases. And FUTURE FREEBIES is STILL $30 in lost revenue or shall we say PROFIT had they NOT given away a FREE case. Each case can't cost more then $1 to manufacture. So, Apple is LOSING $29 of profit PER CASE in the future, on top of the $90 million they're going to refund back to people already....Assuming all 3 million bought a case of course.
 
nasa25 said:
your forgetting the fact that it only costs apple like $.10 to actually produce the case, so its $300k, not $90M
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Its called loss of profits. It may only COST .10 but they are still not making 29.90 when they give it away.
 
gregnauman said:
Its called loss of profits. It may only COST .10 but they are still not making 29.90 when they give it away.
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the lost profits is in :

a) refunds that they will now have to give
b) the lost profits of bumpers that they would have normally sold at full price


The actual out of pocket cost would be a lot less than the opportunity cost of lost revenue.
 
KidStallyn said:
Yah...got that....it's still 90M that's not in their bank account yesterday had they NOT decided to give away free cases. And FUTURE FREEBIES is STILL $30 in lost revenue or shall we say PROFIT had they NOT given away a FREE case. Each case can't cost more then $1 to manufacture. So, Apple is LOSING $29 of profit PER CASE in the future, on top of the $90 million they're going to refund back to people already....Assuming all 3 million bought a case of course.
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There we go, you get it sort of.

I can guarantee and explicitly confirm, with direct information that all 3,000,000 customers did not purchase a bumper. Remember, case != bumper.
 
KidStallyn said:
Yah...got that....it's still 90M that's not in their bank account yesterday had they NOT decided to give away free cases. And FUTURE FREEBIES is STILL $30 in lost revenue or shall we say PROFIT had they NOT given away a FREE case. Each case can't cost more then $1 to manufacture. So, Apple is LOSING $29 of profit PER CASE in the future, on top of the $90 million they're going to refund back to people already....Assuming all 3 million bought a case of course.
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Consider this: if Apple had done nothing their stock price would have gone down insanely. Apple's primary responsibility is to make their investors money. This allows for that better than any other solution.
 
timeconsumer said:
Sure it doesn't cost apple $90 million to manufacture the case, but, that is lost revenue. If everyone was to purchase a bumper at the $30 price, then Apple would gain $90 million rather than lose 3-6 million by giving this away for free or refunding. But I'm probably wrong, so I should go get an education.
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you can't assume $90mil since you can't assume all 3mill users would have bought one
 
OneMike said:
Yes, but in that case you're saying that 3 Million people got bumpers to begin which is not true. Way less.

Either way I agree. Lost revenue, just a way smaller figure than what you listed.
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During the presentation they said that 20% of iphone 4 buyers got a case, versus 80% of 3gs buyers.

If every single one of those cases is an Apple bumper and every single bumper owner opts for the refund, then that's 600k bumpers or a total of $18mil in refunds liability.
 
KidStallyn said:
Yah...got that....it's still 90M that's not in their bank account yesterday you idiot had they NOT decided to give away free cases. And FUTURE FREEBIES is STILL $30 in lost revenue or shall we say PROFIT had they NOT given away a FREE case. Each case can't cost more then $1 to manufacture. So, Apple is LOSING $29 of profit PER CASE in the future, on top of the $90 million they're going to refund back to people already....Assuming all 3 million bought a case of course.
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OK then...

1/ How many bumpers would Apple have sold if there hadn't have been an antenna problem?

Clue: Less

2/ How many phones sales would Apple have lost, if they hand't have made a gesture - such as a free bumper?

Clue: Lots

3/ How much more profit does Apple make from an iPhone, compare to a bumper?

Clue: 10x more

4/ Does today's announcement of free bumpers represent an overall loss to Apple (less bumpers sold) or does it represent a gain to Apple (less iPhone sales lost)?

Clue: They're not losing money by giving away bumpers.
 
And case manufacturers who have pissed off Apple just let out a huge collective OHHHHHHH SHYYYYAT!!!!! when Steve mentioned that 3rd Party cases would not be covered. Basically, they are going to have to figure out a way to give their cases away for free to keep up with the Jobs'......Otherwise, nobody's going to buy them.
 
Cost will still be in the millions. Materials, manufacturing, packaging and shipment, that's probably $3 to $5 per bumper. That'd be 9 to 15 million right there.
 
EstrlM3 said:
You can easily assume 90 Million as they will sell more iphones than 3 million. :rolleyes:
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doesn't matter how many, because there is absolutely no way you can assume 3mil or any other number will buy a case let alone buy a bumper. there are too many variables to even try to guess how much potential money apple may or may not have to spend on this, the current numbers are skewed since ii'm sure there were plenty who normally wouldn't have bought one but bought one either because they had reception issues or they feared they would so they bought it before even testing to see if they really needed one

sounds like you went to the same math class the RIAA went to

timeconsumer said:
I wasn't assuming, I was just stating if that many people bought the case it'd be potential revenue for apple.
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i'm speaking to the thread starter not you
 
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