So late last night, I chatted up Apple for a couple hours to get my iPhone 6 replaced as it was very slightly bent. After a long two and a half hour chat (poor guy I know), he grants an exception. Today, I go to the Apple Store, get it replaced with a brand new one without much hassle. I leave - turns out the phone wasn't activated so I go back to the Apple Store. They call Sprint, my carrier, pretty painless call. The associate that called ended up having a long, completely random talk with me about technology in general. Somehow, the cost of a lightning cable came up, after asking if I could get my leather case replaced. Turns out, it's $0.19¢ to manufacture a Lightning cable, although he wasn't sure if that included the box, etc. Jokingly asked if he knew the margins for any other products, he said no. That markup is insane though, thought I'd share.
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Apple's cost to manufacture a Lightning cable
- Thread starter Squilly
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I'd have no idea what a lightning cable cost to make. Neither would the guy in the store though. It's not the sort of thing management is going to share is it?
Exactly. Asking almost anyone what 'item X' costs is going to be a naive guess. There are so many variables: raw materials, labour costs, shipping, warehousing, retail costs, warranty, marketing, R&D, customer support, packaging, regional regulation and taxes, currency fluctuations...etc.
That's probably his commission from selling you one.
They don't work on commission.
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Maybe he looked at confidential price charts/sheets?
What is the going price for a original apple lighten Cable if u should replace one? Just by the name alone sound like it would be more than $0.19 to produce.
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How did your phone get slightly bend? Do u think it came like that and u didn't notice it at first or what?
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How did your phone get slightly bend? Do u think it came like that and u didn't notice it at first or what?
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Well, idk how expensive they are, but I just got an off-brand MFI certified one.
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$19 original, or $17 for a replacement directly from Apple. I honestly don't know how it bent. Just got two new lightning cables and a leather case replaced free from them though.
There are all sorts of "maybe" reasons. Unless there's a meaningful reference the 19 cent claim isn't any less dubious than any other random figure.
Ok that was very cool that they took care of u though. Very out standing customer serivce on Apple part.
Yeah, I'm sure Apple distributes confidential cost data to their retail store clerks to disseminate such information to customers.
I know people who work inside Apple who aren't privy to such information.
One thing that's not a secret is that Apple employees who wish to remain Apple employees talk very little about their work, or the company, even for the job functions that they are familiar with. The secretive culture is no myth.
I know people who work inside Apple who aren't privy to such information.
One thing that's not a secret is that Apple employees who wish to remain Apple employees talk very little about their work, or the company, even for the job functions that they are familiar with. The secretive culture is no myth.
That is a perfect explanation on why the Apple cables went up from $1.50 to $11 on DX. Same margins, just more expensive to fake make.
Everything we buy is cheap or cost very little. This is nothing new. In business you want to have the production cost low so that you can turn a profit. A cheese pizza cost less than $0.60 to make. The Apple guy might be right. These things are cheap and companies know that too which is why you will see Lightning cables costing more than the Micro USB cables. Before the release of the iPhone accessories like AUX cables, headphones, etc cost less than $5. Now they can go from $10 and up.
The cables that came with the first iPod were a lot more durable than what is shipped in the iOS devices today.
The cables that came with the first iPod were a lot more durable than what is shipped in the iOS devices today.
There's also gotta be a reason as to why there are so many MFi cables on the market today. If my research on MFi certification is right, it's $4 per cable. Some are sold at $8. Little margin for profit, but also means small costs for manufacturing.
I think the Engineering design and development costs are recovered through the life of the product. So it is not just cost to manufacture that is involved.
Well... He works for a Apple, albeit a retail store. If someone from NASA told me the world was going to end with experience and sounded authentic, it would give it some legitimacy.
