3G S costs $179 to produce-iSuppli

Discussion in 'iPhone' started by rdowns, Jun 24, 2009.

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  1. rdowns macrumors Penryn

    rdowns

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    #1
    Link



     
  2. The General macrumors 601

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  3. uberamd macrumors 68030

    uberamd

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    #3
    Nah, the software and concepts develop themselves don't they. Heh. Thats why I always have a problem with these. People see $180 in parts and get all huffy and puffy over the fact that they paid more. When in reality, there are employees behind the scenes doing a TON of work, and they all need paychecks too.
     
  4. Michael CM1 macrumors 603

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    #5
    I really hate these articles. There are thousands of hours put into R&D and the OS by Apple employees, yet these people always love to just put part costs on there. The article doesn't mention that at all because it would kill the total premise.

    As I said on the 3G parts, when you buy a newspaper, it probably costs maybe 25 cents for all of the paper and ink you see. Same deal with a magazine. But that doesn't mean that thousands aren't invested in other things that make it worth buying.
     
  5. TSX macrumors 68030

    TSX

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    #6
    I remember when they said the new iPod had $4.00 in parts and was selling for 50.
     
  6. jmpage2 macrumors 68030

    jmpage2

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    #7
    I would personally love it if they showed that the 32GB version only costs $80 more to make, leaving Apple an even better profit margin.

    Last summer there were non stop claims that we wouldn't see a 32GB iPhone till at least 2011 since the cost of a single 32GB flash chip for it was sooooo expensive.

    LOL!!!
     
  7. Michael CM1 macrumors 603

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    #8
    I don't think Apple cares how much more the extra flash costs. They just believe in the price points. You have 8GB, 16GB and 32GB iPod touch models about $100 apart -- $229, $299, $399. If the prices were based on flash, you'd think the 32GB would cost $459 based on the 8GB difference in the first two. But nope.
     
  8. jmpage2 macrumors 68030

    jmpage2

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    #9
    Of course they care, they do have to turn a profit on these things. If you don't think that Apple is negotiating the prices of these parts months and months in advance you are fooling yourself. They probably have contracts that guarantee them certain price drops based on time of year, number of units ordered, etc. Apple is the biggest consumer of flash ram in the world. I am actually surprised that they haven't simply acquired someone like Sandisk so that they can have better guarantees on supply, etc.

    I guess the point I'm making is that they will continue to beef up the storage on these until they have the same storage levels seen on hard drives.

    Anyone who insists otherwise based on current prices is simply fooling themselves.

    This also would indicate that we will see a $399 64GB iPod Touch before year's end.
     
  9. MikePA macrumors 68020

    MikePA

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    #10
    A stupid article from an entirely predictable city and 'news' agency.The Salary Czar will set compensation levels, so an iPhone Czar to set selling prices makes perfect sense.
     
  10. coolwater macrumors 6502a

    coolwater

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    #11
    If $179 for 16GB 3GS, then, maybe not more than $250 for 32GB 3GS?

    I am also curious about the wholesale price that Apple charges AT&T for an iPhone.
     
  11. nuckinfutz macrumors 603

    nuckinfutz

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    #12
    COOL!

    I'm so ready to start buying parts and build my own iPhone! I just need the list of suppliers so I can buy one off parts. Wooohooo thanks iSuppli!

    :apple:
     
  12. phillipjfry macrumors 6502a

    phillipjfry

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    #13
    I can't BELIEVE they would dare charge me 599$ for a phone that ONLY costs 179$ to make!!! :mad:

    *zips up fire-retardant suit*
     
  13. coolwater macrumors 6502a

    coolwater

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    #14

    Monopoly gives them the power because people are willing to pay that price. :mad:
     
  14. doubleatheman macrumors 6502a

    doubleatheman

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    #15
    + all the servers and processing power apple is running for us in the background....

    + service

    + acessories

    ect ect...

    it not just a peice of silicon.
     
  15. rdowns thread starter macrumors Penryn

    rdowns

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    #16
    What the hell is this supposed to mean? Keep your damn politics in the PRSI forum. I simply posted a news article of interest to members of this forum.
     
  16. dagomike macrumors 65816

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    #17
    What bugs me about isuppli is there's no context, so everyone is left thinking ZOMG X-company is ripping us off! when really their operating margin is considerably smaller.
     
  17. EarthDawn macrumors 6502a

    EarthDawn

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  18. diabolic macrumors 68000

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    #19
    It's funny, I honestly don't care how much it costs them to make.

    If I thought the retail price was too high, I wouldn't complain about it. I just wouldn't buy one.
     
  19. FSMBP macrumors 68020

    FSMBP

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    #21
    Why is everyone saying "That article sucks...there's a lot of money spent in R&D"?

    Did you guys actually think anyone with common sense wouldn't realize that? Like it's some unknown fact to the masses that there are R&D and other expenses besides parts/labor.

    The article states that the parts costs Apple that much - it's not lyingl It's just interesting to see how much the parts cost. Jeez Luiz!!!
     
  20. diabolic macrumors 68000

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    #22
    Because info like this is inevitably followed by post after post saying that it's further proof that Apple is gouging everyone on the price. Seems that a lot of people feel companies should only make a "reasonable" profit, and "reasonable" is always some ridiculously small number.

    EDIT: Case in point http://forums.macrumors.com/showthread.php?t=731828
     
  21. FSMBP macrumors 68020

    FSMBP

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    #23
    I see your point but just because a couple of morons voiced their horrible opinions doesn't mean the article is bad.
     
  22. MikePA macrumors 68020

    MikePA

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    #24
    You didn't simply post a news article. Who gives a #$#$ what the parts cost to make an iPhone? If you don't like the replies, don't post thinly veiled social commentary outside the PRSI forum. Take your own damn advice.
     
  23. TSX macrumors 68030

    TSX

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    #25
    I think one of the reasons its so cheap to make is because, apple buys millions of each part. Im sure they get a discount buy buying 10 million+ processors, now if they only bought 100 processors the cost would go up.
     
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