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If iPhone X costs $370, then why are you...
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Samsung that makes the phones and Samsung that makes the parts are actually separate companies and Samsung Mobile has to pay for the parts just like any other company. My assumption is that they get a lower price because of the relationship, but nothing drastic.
It is the same way with a lot of companies. I work for FedEx, and technically Ground and Express are serpate companies and can't co-mingle and if they have to interact, they charge each other for their services.
Asked by a guy that says in his signature block that he owns a Mac 27", Macbook Pro 13", iPad Pro, Apple Watch Sport & a Note 8. 5/10 for the trolling, troll.
Be somewhat interesting and tell us how you pair your Apple Watch with your Note 8.
JamiLynee
macrumors 6502
All kinds of trolling here...
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Totally, but without software... because clearly the R&D on that wasn't calculated
According to your logic, I hope you don’t own a single Apple product because they clearly make a profit from everything they own.
I didn't mind the premium when they were an industry leader. When's the last time they came out with something truly innovative.
The imbedded home button would have been something. But they failed and now we have the kludgy way of logging into our iPhoneX.
The imbedded home button would have been something. But they failed and now we have the kludgy way of logging into our iPhoneX.
So many people defending Apple here...
It is interesting that video game systems can be sold at a loss, like with PlayStation 4 and Xbox, and have the investment recouped from game sales and licensing.
Apple isn’t just making money off the phone; they charge developers commission on their sale of apps as well. Accessories and licensing products; got a genuine lightning adapter? Or that premium leather Apple case....
While I’m amazed at the engineering prowess in this phone, other companies are charging less for their premium products; Essential Phone can be bought on sale right now on Best Buy, $450. I don’t think that shaped LCD screen and titanium body are cheap, and they don’t have near the user install base as Apple.
But go ahead and defend Apple’s decisions. They know they can probably charge $1500 or more on future phones. And people will still eat it up.
It is interesting that video game systems can be sold at a loss, like with PlayStation 4 and Xbox, and have the investment recouped from game sales and licensing.
Apple isn’t just making money off the phone; they charge developers commission on their sale of apps as well. Accessories and licensing products; got a genuine lightning adapter? Or that premium leather Apple case....
While I’m amazed at the engineering prowess in this phone, other companies are charging less for their premium products; Essential Phone can be bought on sale right now on Best Buy, $450. I don’t think that shaped LCD screen and titanium body are cheap, and they don’t have near the user install base as Apple.
But go ahead and defend Apple’s decisions. They know they can probably charge $1500 or more on future phones. And people will still eat it up.
Knowimagination
macrumors 68020
So to be clear in your view it is defending apple to not expect them to take a loss on their phones?
You do realize that console manufactures would love to make a profit on consoles if the market would support the price right? it's not like they are doing it out of the kindness of their heart it is a business decision.
Apple doesn't have to go through that because the market is supporting profit on the hardware, this is how the iPhone has always been.
noobinator
macrumors 604
The difference is Sony and Microsoft don't have a choice. The market will only pay less than what it costs them to make. They'd GLADLY charge $1,000 per console all day, every day if people were willing to buy it at this price.
I think Apple are free to set whatever price they want on their products, just like we are free to decide whether it's worth it or not.
And this comes from a guy who is not planning to buy an iPhone X, not because I think it's bad or overpriced, but simply because I don't use my phone enough to justify spending that much on it. I prefer to spend more money on the things I enjoy. I fully understand though many people find it worth it, and their choice to spend that much on it.
Not sure what does the tax situation add to you argument
video game systems they sell the same model for a few years with only cost cutting modifications. new iphones come out every year.
jimmy_uk
macrumors 68030
Yep, stop buying the products and the factories close. All those workers will thank you when they are out of work.
Apple doesn't need defending. It is a free market. If no one pays $1000 for an iPhone X then they wouldn't charge that. They are able to preserve a 38% profit margin because their products sell. That is a very envious position that any business would love to be in. Loss leading like the consoles you mention is one way to establish market share when market share is what you are looking for but that comes at a price to the bottom line. No one wants to sell a product for a loss if you can help it and it is a strategy that Apple does not have to embrace whatsoever.
BenTrovato
macrumors 68040
This is true. That's the economy. Apple is in the position to over charge for their devices because people are willing to pay for it. Simple as that. I have no problem admitting the X is not worth $999 but as an investor I would call Apple stupid if they weren't maximizing their margins. Pick your side of the fence, you're not entirely right or wrong either way.
Surf Monkey
Suspended
Because iPhones only cost as much to make as the materials used. Brilliant “logic.”
Nanotyrns
macrumors 65816
If you think that's crazy then this might blow your mind entirely ...
That $370 is what Apple paid it's suppliers for those parts. The suppliers marked up the cost of materials/components to pay for their own overhead. So, really, the phone actually cost less than $370!!
That $370 is what Apple paid it's suppliers for those parts. The suppliers marked up the cost of materials/components to pay for their own overhead. So, really, the phone actually cost less than $370!!
syncopy
macrumors member
Something about paying the designers, engineers, developers, and supply chain management specialists, and everyone else that had to do with the phone and then we have iCloud, store, etc etc etc. You'd have to be stupid to think the cost of a phone is the sum of its components.
noobinator
macrumors 604
Actually the iPhone was free to make. At some point, everything was dug out of some hole in the earth and tools were used to reshape and stuff was combined to make an iPhone. Free of charge.
How many people would be able to pay a $1000 to buy an iPhone if monthly installments were not offered?
Surf Monkey
Suspended
Not to mention marketing, retail operations, product shipping, quality control...
That $370 is only the tip of the iceberg when it comes to the manufacturer costs involved.
Lost of people buy them outright.
Chupa Chupa
macrumors G5
What does it matter? The world survives on credit. How many people would be able to drive a Porsche or Mercedes or buy multi-million dollar home if monthly installments were not offered. Do you think even people with good incomes don't finance or lease? The most fiscally irresponsible people I've met are doctors with decent 6 figure incomes.
Heck, how many people would be able to buy enough food if it wasn't for credit cards? Do you really think people pay off their credit cards every month? The avg person has a $2K balance and less than $500 in savings.
BTW I paid in full for mine because I don't like contracts.
Nanotyrns
macrumors 65816
Abiatha Swelter
macrumors member
Yeah, the single biggest expense for a restaurant is rent. $3 of that $7 is going to the landlord. If you buy an Apple thing at the Apple store, some chunk of that is going to the landlord, too.
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