Toggle sidebar Toggle sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

If iPhone X costs $370, then why are you...

Status
Not open for further replies.
Because there are other costs other than component costs. Such as r&d, facilities, employees, manufacturing, running retail stores, etc.

Also because Apple is a business and want to make money and I’M willing to pay the price they set because I feel it’s worth the cost.

Applying your logic would prevent you from buying anything. Think how much a Starbucks drink is and then think about the pennies its ingredients costs.
 
  • Like
Reactions: OriginalAppleGuy, MTD's Mac, Appl3FTW and 31 others
gentleman00 said:
paying $1000 for it. Is the price justified given the fact that Apple has $252 billion in offshore accounts to avoid paying taxes?

http://mashable.com/2017/11/09/iphone-x-true-cost/#bKolYZlqPmqL
Click to expand...
Because, it's a business and they can charge what they want (plus they know people will buy it regardless.) R&D costs were probably higher and also, it's Apple, the most profitable company in the U.S. You don't get there without charging high margins and selling lots of them.
 
gentleman00 said:
paying $1000 for it. Is the price justified given the fact that Apple has $252 billion in offshore accounts to avoid paying taxes?

http://mashable.com/2017/11/09/iphone-x-true-cost/#bKolYZlqPmqL
Click to expand...

Breaking news:
A $400,000 house actually only costs about $100,000 in materials. You're paying the rest for labor and architects, engineers, plumbers, etc.

Breaking news:
That $7 burger you bought only costs the restaurant about $3 worth of produce.

If the costs of materials is $370, and they charge $370, who is going to pay for all the engineers and employees who worked countless hours to research the development of the iPhone X? Do you work for free?
 
  • Like
Reactions: Appl3FTW, Not_A_Chef, Howyalikdemapls and 8 others
1. "True cost" is a pretty loaded term. Guesstimate is a better phrase for that.

2. There is cost involved in putting it together that is not factored in.

3. There is cost involved in shipping units that is not factored in.

4. There is cost involved in marketing that is not factored in.

5. There is significant cost involved in R&D that is not factored in.

6. Profit has to be made. The salaries for the thousands of employees around the world aren't going to pay themselves and shareholders expect ROI.

7. The not so thinly veiled political junk about tax avoidance is irrelevant.
 
  • Like
Reactions: Cvx5832, Mabus51, Dj64Mk7 and 7 others
yanki01 said:
because it's our money? you can't think they're supposed to price it at $400 (or $500 or $600). how much are cars really worth to make yet they have markups. houses? my shirt i'm wearing probably cost about $5 to make yet i spent $50 for it.
Click to expand...

I recommend hiring a financial advisor if in fact you are paying $45 over the cost of your shirt. Moreover, that $5
Shirt you are wearing was probably made in a sweatshop in some developing country where workers are underpaid and overworked. 😵
 
  • Like
Reactions: Dj64Mk7 and fabianvs
If the BOM is $370, then the actual cost is higher. People don't assemble things for free, people don't open stores and stock things for free, ...I read the gross profit on the X is 62% so the cost is roughly $420. The gross profit on the X is higher than the 8/8+. They tested the price point and so far that test got a passing grade.
 
gentleman00 said:
paying $1000 for it. Is the price justified given the fact that Apple has $252 billion in offshore accounts to avoid paying taxes?

http://mashable.com/2017/11/09/iphone-x-true-cost/#bKolYZlqPmqL
Click to expand...

*Facepalm*

You do know that is not the actual cost of the finished phone right? That is just the cost of the physical parts of the phone. Then you have to add in the manufacturing cost, the R&D cost (normally higher on a brand new design), the cost to get the phone to you, the cost to keep their lights on. All of this is taken into account when setting a price for the phone. Yes, the difference in price is slightly greater for the X over the 8, but I feel like that is partially to do with the greater R&D cost for this phone.
 
Kendo said:
Breaking news:
A $400,000 house actually only costs about $100,000 in materials. You're paying the rest for labor and architects, engineers, plumbers, etc.

Breaking news:
That $7 burger you bought only costs the restaurant about $3 worth of produce.

If the costs of materials is $370, and they charge $370, who is going to pay for all the engineers and employees who worked countless hours to research the development of the iPhone X? Do you work for free?
Click to expand...


A $100,000 house appreciates over time. An iPhone X doesn’t. An underwhelming comparison.
 
  • Like
Reactions: nextgeneric
It's not all profit. There is at least $130 in innovation, distribution and sales costs. Maybe a bit less, since Apple failed to make the imbedded home key a reality.

So, the pure profit is probably only $500.
 
snatefinch said:
*Facepalm*

You do know that is not the actual cost of the finished phone right? That is just the cost of the physical parts of the phone. Then you have to add in the manufacturing cost, the R&D cost (normally higher on a brand new design), the cost to get the phone to you, the cost to keep their lights on. All of this is taken into account when setting a price for the phone. Yes, the difference in price is slightly greater for the X over the 8, but I feel like that is partially to do with the greater R&D cost for this phone.
Click to expand...

You ‘feel’ but you don’t know that for a fact. Unless, you work for Apple’s accounting department, you wouldn’t know that.
 
gentleman00 said:
You ‘feel’ but you don’t know that for a fact. Unless, you work for Apple’s accounting department, you wouldn’t know that.
Click to expand...

How much did you pay for your car? Now add up the parts and see where you are at? Guess this concept is too complex for you.
 
gentleman00 said:
You ‘feel’ but you don’t know that for a fact. Unless, you work for Apple’s accounting department, you wouldn’t know that.
Click to expand...

Common sense dictates that the overhead for a new design is higher than that of an established design. Decades of tech innovation and production also lead us to the same conclusion.
 
  • Like
Reactions: Ntombi
Status
Not open for further replies.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back