The more I see threads like this the more i'm convinced that china as well as the international bankers the helped them are operating on this forum.
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Foxconn Looking to Build $5.7 Billion iPhone Display Factory to Win Apple Orders
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150 million iPhones in fiscal 2013. Using your ratio, that's ~$13 R&D per phone.
Apple's gross profit margin on an iPhone is a little over 50%. That includes the cost of the parts, manufacturing, shipping and patent royalties.
After paying for the rest of the cost of doing business (tax, admin, R&D), their net profit margin is about 30% (~$200) per phone. Which is higher than any other smartphone maker, except perhaps Blackberry back in its heyday.
Assembly workers make about $400 a month, working about six days a week, IIRC.
According to the WSJ, each production line has about 500-600 people each. to assemble an iPhone into its final packaging, ready to ship.
With 100 production lines going, Foxconn can produce 500,000 iPhones a day. Umm... about three a minute from each line, 24 hours a day.
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Phones per person per day
Another way to look at this is that $4-$4.50 is about 2 labor hours in China, so a person working a 10 hour day would account for 5 phones (not literally one person making 5 complete phones, but just in terms of labor hours per phone).
Another way to look at this is that $4-$4.50 is about 2 labor hours in China, so a person working a 10 hour day would account for 5 phones (not literally one person making 5 complete phones, but just in terms of labor hours per phone).
And Americans did nothing about it. They refused to work at lower wages and let this happen.
Not just the R&D and other things that go into the product, but also the services that come with it.
Such as iCloud, Siri, Maps, Genius Bar and many more. With Android, Google provides these with revenue coming from "selling" you to advertisers. But Apple has to pay for these from up-front revenue.
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There was nothing that they could do about it. Do remember that the cost structure of living in the U.S. is nothing like that of India or China. The minimum wage in the U.S. is a lot more than the numbers quoted above, and yet it still is inadequate in almost all of the country. Someone working full-time (40 hours x 50 weeks = 2000 hours) only makes $14,500 per year. That's below the poverty line.
Apple actually tell you how much their average margin is. It's in their earnings reports. They don't break down the margin by product, but since the iPhone is over half of their total revenue it's likely to be close to that figure.
Margin last quarter was about 38%, which means $248.62 from a $649 iPhone 6. That means the cost to make each phone is $402.68. If this chart is correct, the non-components cost comes to $202.28, which is about half of the cost of production.
Within that $202.28 per device, Apple has to pay for:
- Shipping. Shipping components to China, shipping phones from China.
- Apple Stores. Including staff, rent, electricity, water, etc.
- Infinite Loop. They likely own the building, but it still costs money to run.
- Software. Tens of thousands of software engineers in Cupertino, designers, QA testers, etc.
- iCloud. 5GB free storage over several years until you buy a new iPhone. Building and running data centres for iMessage, FaceTime, push notifications, etc.
- Hardware engineers. The people who design, prototype and test the phones including continuous random testing of devices off the production line.
- Advertising. Print ads, television ads, banners, etc.
And there's probably more stuff that I forgot. All of the money to do this stuff has to come from somewhere. That is where it comes from. There is more to an iPhone than a bunch of components.
Yes and paid moves for the laid off workers! Can you imagine " Hey Mom, I'm moving to China"
Don't worry they will when Apple goes bankrupt or no one wants to buy Apple products. Until then you can just buy a competitor smart phone made in USA. LOL which is like never.
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Warm and fuzzy dream which will never happen. Americans have spoken. Cheap as possible.
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So you blame China for your problem? News Flash.. US did it to themselves with their self interest for PROFIT.
It seems I have more evidence who's operating on this forum.
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I agree a whole community was built around the Arizona plant and now look.