And that’s my point. It’s not sold at a loss. Companies need to make money. If it’s truly sold at a loss a company will end up going out of business. The fact they ARENT contradicts the statements like the consoles are “given away”
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Apple Appeals Epic Games Ruling Over 'Anti-Steering' Provisions to U.S. Supreme Court
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And that’s my point. It’s not sold at a loss. Companies need to make money. If it’s truly sold at a loss a company will end up going out of business. The fact they ARENT contradicts the statements like the consoles are “given away”
Dude, you are grasping for straws! Apple did not become the World's richest company by selling iPhones at a loss! You do reealize that Apple sells over 200 million iPhones a year!
Microsoft is a 2 trillion dollar company and could give away XBOX for free for decades and not go out of business. It would certainly be a stupid business decision. They likely look at the costs over its 8 year cycle losing money the first several years and then make up for it on the other end. They play the long game and have the cash reserves to do so.
So if they charged an extra dollar and sold at a profit, then they would need to shut down their app stores? How much of a loss must one sell at to charge a fee of what percentage? If they go on sale and temporarily sell at a loss, is that sufficient? What if they transfer their IP to a separate business and then license that IP back at a loss? If they donated their console profits to charity, is that the same as selling at a loss? Does it matter which charity?
This is among the silliest lines of reasoning that, for whatever reason, some people still think makes sense... Money is money, it really doesn't matter what path that money takes to the bottom line.
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For example Sony sell a ps5 digital version for $399.00 they sell it close to manufacture cost. Where as it costs Apple $501 to make an iPhone 14 pro max but sell it for $1099. So thats why console makers don’t make that much profit off them. They need people to buy lots of games over a period of time.
Which are both free anyway, as I understand it.
Though the way you describe it, maybe they should be forced to charge higher prices for social media apps as a way to break addiction, like they've done with cigarette prices.
It’s true. Apple Fitness has done wonders for my cankles.
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Anyone that works there deserves it for working for such a moron of a CEO. Thinking he can just sue to force Apple to bend their business model to what he wants. You signed up for it. Deal with it or go away.
You as in Epic, not you as in you, btw. lol.
Epic also sued Google for the exact same thing! Imagine suing 2 separate companies that are each worth over 1 Trillion dollars, that have some say in the outcome of your livelihood, expecting a good outcome!
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However, the PS5 manufacturing cost is thought to be $450, leaving Sony with a difficult pricing decision for its next console.
Starting off by clarifying that this has nothing to do with who I think should win this court case, nor anything to do with whether or not I think 30% is a good or bad number for Apple to charge.
Your comment does not represent how markets work. Spotify or Epic are not going to reduce their prices if they get 30% more from Apple, they are going to keep the money. The market bears what the market bears and any company that is operating properly is going to charge what they can for their products. In this case consumers are not rooting against their own interest, they are rooting for who gets the money they are already going to spend.
You realize how much lightning licensing is and how much their accessories are and the App Store cuts? The SAME THINGS that people are saying how consoles are profitable. That can work the same way with Apple.
We are not talking what-ifs here! I hate to say it to you but Facts over Feelings dude, real life is not a fairy tale! Apple is a public company on the Stock Market (AAPL) and they post legally binding quarterly reports and a yearly report too! Apple makes like 80 Billion dollars a quarter. At one point Apple had more money in the bank that the Treasury of the United States of America! Apple also has been known to buy back 300 million dollars of its stock per day! You can see those numbers here! https://investor.apple.com/investor-relations/default.aspx
Yes we don’t have all the facts. That is the point. Where is the breakdown on SOC, Casing, etc actual RAW IPHONE costs. Vs how much the lightning licensing (used to), accessory costs etc make the iPhone profitable.
The exact same argument being applied to consoles here. It’s sold at a loss but games, accessories etc is what makes it profitable.
It costs Apple $501 dollars to manufacture a iPhone 14 pro max & they sell it for $1099.
It costs Sony $450 dollars to manufacture a ps5 & they sell it for $499
So apple make a far bigger profit
You're conveniently forgetting that web and web apps are free. These developers can choose their own payment processors, host their own files, do their own marketing but need to work within the security sandbox of Safari.
There's a number of services doing this now, including Xbox Xcloud, Geforce Now etc.
Developers don't like that because they lose access to all the metrics available to track/ measure/ monetise their users.
So basically, they want all the benefits of the App Store without actually paying for it.
It’s not even a valid point from the start.
It’s like you know that there are two trees on your property. One is an Apple tree, and one is an Oak tree. Your landscaper has been treating both the same, but then you get a NEW landscaper that refuses to work on the Apple tree.
Because it’s not a tree.
“What do you mean it’s not a tree?”
“Well, you can eat from it. You can’t eat from trees.”
At that point, while going into the details MAY be interesting to see what brought them to the conclusion, you can disregard everything they say about trees. “It’s essential” or “they don’t make a profit on hardware” or “the hardware only plays games” are all things that only matters in the heart of the individual making the impassioned plea who feel that they have to define something, ANYTHING as “the reason why they should be treated differently”. Even though the only thing that REALLY matters is that they are a business that makes hardware and software and, as a result of the investment they have poured into their business, if they’re successful, they reap the benefits of smart business decisions.
If it was Nintendo Epic were going after folks would say “Mario games are essential” or “they have a monopoly on games made by Nintendo” or other things not related to the fact that they are not functionally different from any other company trying to be successful by making things people want to buy.
You can definitely look up the cost of the "bill of of materials" for each iPhone.
But it's harder to nail down the cost of the research and development for each component that makes up the iPhone. Apple is paying the salaries of engineers to develop the image-pipeline between their A-series processors and the camera sensors, for instance. And designing new titanium manufacturing techniques. And so on.
Basically... there's more than just the manufacturing cost and bill of materials. You can't forget all the work that is done to get those components in the first place.
If there are 5,000 people working on the iPhone... that's 5,000 salaries that are paid to make the iPhone.
And there's software development, too.
New figures reveal that Apple spent a record $26.25 billion on research and development in 2022, a rise of about four billion from 2021 which obviously needs to be recovered in it's pricing structures.You can definitely look up the cost of the "bill of of materials" for each iPhone.
But it's harder to nail down the cost of the research and development for each component that makes up the iPhone. Apple is paying the salaries of engineers to develop the image-pipeline between their A-series processors and the camera sensors, for instance. And designing new titanium manufacturing techniques. And so on.
Basically... there's more than just the manufacturing cost and bill of materials. You can't forget all the work that is done to get those components in the first place.
If there are 5,000 people working on the iPhone... that's 5,000 salaries that are paid to make the iPhone.
And there's software development, too.
Precisely. And I do not see an official statement from companies on their financial breakdown. So are people just estimating based on how much a component costs? I am not finding a reliable source for the iPhone 15 Pro and Pro Max costs on Apple's site.You can definitely look up the cost of the "bill of of materials" for each iPhone.
But it's harder to nail down the cost of the research and development for each component that makes up the iPhone. Apple is paying the salaries of engineers to develop the image-pipeline between their A-series processors and the camera sensors, for instance. And designing new titanium manufacturing techniques. And so on.
Basically... there's more than just the manufacturing cost and bill of materials. You can't forget the work that was done to get those components in the first place.
If there are 5,000 people working on the iPhone... that's 5,000 salaries that are paid to make the iPhone.
And there's software development, too.
I guess since I run my own company I am looking for something more substantial than "$450". I want line items for R&D, Salaries, any equipment purchases etc. How much did it ACTUALLY COST the company to make the product and maintain its deliverables. Not just the raw CPU/RAM/Casing costs.
iPhone revenue in 9 months $156.8You can definitely look up the cost of the "bill of of materials" for each iPhone.
But it's harder to nail down the cost of the research and development for each component that makes up the iPhone. Apple is paying the salaries of engineers to develop the image-pipeline between their A-series processors and the camera sensors, for instance. And designing new titanium manufacturing techniques. And so on.
Basically... there's more than just the manufacturing cost and bill of materials. You can't forget all the work that is done to get those components in the first place.
If there are 5,000 people working on the iPhone... that's 5,000 salaries that are paid to make the iPhone.
And there's software development, too.
billion in 2023
Ps5 sales 3.3 million in 2023
That’s why epic aren’t going after them but going after Apple & google.
($1099 - $501) * 200 million units sold would be a profit of 119 billion dollars a year.
I think maybe your numbers are off?