Apple's cost to manufacture a Lightning cable

Discussion in 'iPhone Accessories' started by Squilly, Dec 28, 2014.

  1. Squilly macrumors 68020

    Squilly

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    #1
    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.
     
  2. smallcoffee macrumors 6502a

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    #2
  3. turtle777 macrumors 6502a

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    #3
    I think the Apple clerk is mistaken.

    This is not just a dumb cable, there are active electronics in it.

    No way in heck it costs only $0.19.

    -t
     
  4. yjchua95 macrumors 604

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    #4
    The cable itself has a micro controller with its own firmware.

    So I doubt it's 19 cents.
     
  5. Apple fanboy macrumors Core

    Apple fanboy

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    #5
    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?
     
  6. sammich macrumors 601

    sammich

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    #6
    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.
     
  7. Jessica Lares macrumors G3

    Jessica Lares

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    #7
    That's probably his commission from selling you one. :D:p
     
  8. Zxxv Suspended

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    #8
    Yes its cheap when you manufacture billions. Try asking a company to make you ten and the price will be way higher. Bulk buying gets you discounts. Basic business 101
     
  9. Squilly thread starter macrumors 68020

    Squilly

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    #9
    They don't work on commission.

    ----------

    Maybe he looked at confidential price charts/sheets?
     
  10. 01silver4, Dec 29, 2014
    Last edited: Dec 29, 2014

    01silver4 macrumors 6502a

    01silver4

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    #10
    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.

    ----------

    How did your phone get slightly bend? Do u think it came like that and u didn't notice it at first or what?
     
  11. vulcanvillalta macrumors 6502

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  12. Squilly thread starter macrumors 68020

    Squilly

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    #12
    $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.
     
  13. takeshi74 macrumors 601

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    #13
    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.
     
  14. 01silver4 macrumors 6502a

    01silver4

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    #14
    Ok that was very cool that they took care of u though. Very out standing customer serivce on Apple part.
     
  15. TheIntruder macrumors 6502a

    TheIntruder

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    #15
    Yeah, I'm sure Apple distributes confidential cost data to their retail store clerks to disseminate such information to customers. :rolleyes:

    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.
     
  16. shamashu macrumors regular

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    #16
    is it true that to be employed in Apple Store you have to be a HArvard Graduate?
     
  17. Jazper macrumors 6502a

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    #17
    It potentially could because of the millions they make.
     
  18. Wyl macrumors member

    Wyl

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    #18
    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.
     
  19. mofunk macrumors 68000

    mofunk

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    #19
    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.
     
  20. Squilly thread starter macrumors 68020

    Squilly

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    #20
    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.
     
  21. Sym0 macrumors 6502

    Sym0

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    #21
    Some guy told me they were 21c - thats official, he said he was eating an apple. I believe him.
     
  22. upnorth85 macrumors 6502

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    #22
    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.

     
  23. richwoodrocket macrumors 68020

    richwoodrocket

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    #23
    If he told you that the world was going to end tomorrow would you believe him?
     
  24. Squilly thread starter macrumors 68020

    Squilly

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    #24
    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.
     
  25. Paco II macrumors 65816

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    #25
    Even if it was someone that worked at the NASA gift shop?

     

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