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Cost to build iPhone down to $130, Apple can sell subsidized for $99 or less now.

With a new iPhone due out, no one knows what is costs to build. Just another Wall Street analyst talking out of his anal. :D
 
Dropped to 130 from what? The hardware will be different in a month and AT&T decides the subsidized price, doesn't it?
 
1. Talks about current iPhone.
2. Doesn't include R&D, advertising etc.
3. What idiot wants a $99 phone with a $70 per month contract?
 
nick9191 said:
3. What idiot wants a $99 phone with a $70 per month contract?
Click to expand...

Lots of people who buy smartphones actually. Look at all the blackberries, Nokia smartphones and WM smartphones that you can get for under $100. Those all have the same priced data plans with AT&T as the iPhone.

That $99 would be the subsidised price. The phone would probably be full retail around $250-$300, like the majority of non-contract smart phone.
 
iphones4evry1 said:
"The cost of materials to build an iPhone has fallen to $130, which "should enable the 8-gigabyte iPhone to hit the $99 price point and stimulate demand elasticity," Kumar wrote in his upgrade note. "
Click to expand...

"Cost of materials to build an iPhone" is not the same as "cost to build an iPhone" which is not the same as "cost to build an iPhone, put it into a shop in the western world, sell it, give support, and make warranty repairs" which is not the same as "cost to develop, build and market an iPhone, put it into a shop in the western world, sell it, give support, and make warranty repairs" which is not the same as "cost to develop, build and market an iPhone, put it into a shop in the western world, sell it, give support, make warranty repairs and earn a bit of profit to keep the shareholders happy".
 
gnasher729 said:
"Cost of materials to build an iPhone" is not the same as "cost to build an iPhone" which is not the same as "cost to build an iPhone, put it into a shop in the western world, sell it, give support, and make warranty repairs" which is not the same as "cost to develop, build and market an iPhone, put it into a shop in the western world, sell it, give support, and make warranty repairs" which is not the same as "cost to develop, build and market an iPhone, put it into a shop in the western world, sell it, give support, make warranty repairs and earn a bit of profit to keep the shareholders happy".
Click to expand...

Hear, hear. The iPhone costs more than the sum of it's parts.

Also one of the most important costs is software. You can't buy Apple's software off the shelf, so in theory you could go out and buy all the parts to make an iPhone and build it yourself, and you'd have a very awesome brick with no OS.
 
nick9191 said:
3. What idiot wants a $99 phone with a $70 per month contract?
Click to expand...

That would be me. I didn't buy one until i could get a refurb for $99.

I'm not sure i understand your point anyway. Can a $70/month contract only be justified if you can spend $200+ on a phone? You sound like a snob. Not saying you are one, but you sound like one. And hey, don't call me an idiot:)
cheers
 
I agree, he dont make any sense.
Like other people dont pay $99 or even less for phones that the service costs about &70 per month or more.
Blackberrys etc.....

churchrd said:
That would be me. I didn't buy one until i could got a refurb for $99.

I'm not sure i understand your point anyway. Can a $70/month contract only be justified if you can spend $200+ on a phone? You sound like a snob. Not saying you are one, but you sound like one. And hey, don't call me an idiot:)
cheers
Click to expand...
 
churchrd said:
That would be me. I didn't buy one until i could got a refurb for $99.

I'm not sure i understand your point anyway. Can a $70/month contract only be justified if you can spend $200+ on a phone? You sound like a snob. Not saying you are one, but you sound like one. And hey, don't call me an idiot:)
cheers
Click to expand...

Hey, all of us the own an iPhone3G paid $199 for a phone that has a $70+ per month bill. Multiplied by the 24 month contract, and service costs $1680 for a $199 phone. More realisitically, I think consumers know that whether they have an iPhone or a Blackberry or an Instinct or whatever smart phone, they are going to be paying a certain amount per month. You cannot change that. But the cost of the phone is NOT about competition between the carriers (AT&T, etc); the cost of the phone is competition between the phone manufacturers. Yes, AT&T buys the phone from Apple and sells it to you, but I think we can be pretty certain that Apple and AT&T sat down and talked for a long time about what price the phone would sell for.
 
iphones4evry1 said:
Hey, all of us the own an iPhone3G paid $199 for a phone that has a $70+ per month bill. Multiplied by the 24 month contract, and service costs $1680 for a $199 phone. More realisitically, I think consumers know that whether they have an iPhone or a Blackberry or an Instinct or whatever smart phone, they are going to be paying a certain amount per month. You cannot change that. But the cost of the phone is NOT about competition between the carriers (AT&T, etc); the cost of the phone is competition between the phone manufacturers. Yes, AT&T buys the phone from Apple and sells it to you, but I think we can be pretty certain that Apple and AT&T sat down and talked for a long time about what price the phone would sell for.
Click to expand...

um, what?

I was just asking nick9191 why he asked "what idiot wants a $99 phone with a $70/month contract?". I didn't understand his correlation between phone cost and monthly cost.

I was saying i bought a refurb 3g for $99. So i must be an idiot. I was just trying to understand what he said.

I understand what you're saying totally, although don't know why you're quoting me. Were you trying to explain why he called me an idiot?:)
 
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