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

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Because you also pay for all the R&D work that went into the X even before it was manufactured. Also, because Apple knows that people will buy it and there is a market for it.
 
gentleman00 said:
I never said that companies must sell products at cost. Read the posts carefully before you post, or don't post at all. 😉
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But you are suggesting that we shouldn't be paying more than cost?
If companies don't sell at cost, and consumers can't purchase above cost, then nothing would ever get sold/bought
 
I know I’m late to this party but..


Doesn’t cost 80,000 for a Porsche, 150 for Jordan’s etc etc. companies are designed to make money and we will spend our money as we choose
 
For being a "gentleman" you're rather brash and inconsiderate to those who disagree. You'd get much further by being pleasant. Not everyone will always agree with your theories and opinions but kindness will certainly help your cause
 
I personally think the iPhone X price is a little too high especially when comparing with other flag ships. With that said, I still bought one cuz in life, you gotta pay to play lol. However, I do not agree with big companies avoiding to pay the proper amount of taxes
 
It amazes me every time how people basically want Apple to sell their phones at rock bottom prices. They complain how they have billions in the bank. They have billions because of the millions of devices they sell and we buy. We buy it because we think it’s a fair price for what we use the devices for. My iPhone X is always on, connected to highspeed internet, I can do almost anything I need to from my phone. It is the best camera I can fit in my pocket. I think the iPhone X is priced exactly right.
 
The question posed in this thread is ridiculous. You can ask that question about most things in this world.
 
I guess when I buy a product, the only thing I care about is the company will be there tomorrow to support the product. Otherwise one should determine if the price/value and form/function ratio is there for you. A Ferrari is only $1000 worth of the steel, aluminum, plastics and sand with the rational being posed in this thread.
 
You must not really know a thing about marketing and business. Let’s take a shoe from adidas. Roughly a $100 shoe cost them $21 to make. After overhead costs (oh you know paying for their employees and retail stores since rent isn’t free), freight, marketing, etc. they make about $2 dollars off a sale. While paying $100 for a shoe that cost $21 to make seems like robbery, I’d venture to say making $2 from that sale is robbery. So yea, no. You think apple engineers work for free? Retail employees work for fun? You think retail stores that carry product and sell them don’t make any money?! Eye. Roll.
 
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tivoboy said:
Having worked nearly a decade in the auto industry, at the manufacturer and importer/dealer level I'm going to challenge this statement without some further clarification and information. Most dealerships end of day are not operating at anywhere near a 2% net profit level - if they are they should probably fold. The margin levels vary greatly for vehicles sales, financing, service and maintenance, extended warranties, consumer discretionary, etc. If one were to get to a "net" 2% level across the board, significant losses would have to be occurring in the major three: vehicle sales/margin; financing; service and maintenance.

Can you elaborate with any links that would support this? Truly interested.
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My proof is that I’m a dealer. My family has owned a Ford dealership for 30 years and have always strived to average 2-3% after tax profit. I belong to NADA 20 group which consist of 20 dealers across the country and our average dealer nets about 2.5%. NADA would love to see dealers average 4% and some imports do average higher net profits than domestics. But not much. Dealerships are very cash intensive businesses with high operating cost. Inventory management is critical along with high personnel expenses.

You don’t have to have significant losses across the three. What you have is low gross margins and high fixed and variable cost against them. We don’t keep much is my point. That’s not to say 2% is horrible but you can easily do 100 million in sales for the year and net 2-3 million profit. That’s actually pretty good.
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suade8880 said:
Average dealership has been succeeding with the net profit of 2-2.2% for years. Up until the last few years that the average net profit has finally started to climb. So it is very profitable to run a dealership right now with the way the economy is. I used to manage a dealership and this is usually how the number breaks down as simple as possible.

Monthly avg-
60 cars at $40k each=$2.4 millions
Service=$350k
Parts=$275k
F&I=$300k
Used Cars=$150k

After all expenses are paid and if you can hold 2% of the total monthly revenue of $3,475,000 that will get you a net profit of almost $70,000. Very nice if you are a single owner. I have also seen financial reports for many other dealers with revenues of tens and millions a month average holding a 2% profit.
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Thank you!!!
 
Yawn. No one has posted how much profit Apple makes from each iPhone X. That was my goal in creating this thread. I am not here arguing why Apple shouldn't make a profit. Again, what's the margin of profit on the iPhone X? It's mindbogling how many irrelevant, nonsensical comments have been posted on this thread. 🙄
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Blakjack said:
The question posed in this thread is ridiculous. You can ask that question about most things in this world.
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And your point is?
 
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One of the more useless threads here on MR and there are a lot of useless threads. This one has to rate in the top 10 I would think. The only purpose of this thread was to see how much discussion could be generated, not to raise questions or seek true info. When posters ignore other comments, or twist comments to suit their biases, then the thread looses all coherency and falls apart into bickering. Just. Like. This. Thread.
 
It sucks the X is $1000, but gotta pay the Apple Tax to enjoy it. I am going to do that as well. Not happy with my Galaxy Note 8.
 
Some of apples stuff is almost priceless, if you really think about it,it’s pretty amazing where technology is today. You pay a premium for great build!

I own roughly 7 iPhones from the years , call me a collector or hoarder but every single one of them still work........ but turtles can walk faster than most of them because of iOS upgrades.
 
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gentleman00 said:
Yawn. No one has posted how much profit Apple makes from each iPhone X. That was my goal in creating this thread.
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Ahh, you failed to mention that in your original post.
There's no way to know how much profit they are making off each iPhone.

At the New Yorker Tech Fest, Jony Ive stated they've been working on the tech in the iPhone X for 5 years.
5 years of Jony Ive's salary alone is a lot of cash. We've no way to know how many other engineers and software developers were involved, but I doubt it is a small number. Then there's the cost of mocking up all the development builds throughout the process. Those are one-off creations, so there's no cost savings for mass purchasing. They don't get those made cheaply abroad, they'll be made very expensively by Apple's own engineers. And they do not get sold, so the only way those costs are recuperated is through the sale of the final product.
Additionally, this is a project that finally made it to production. But it's sales go towards covering the costs of the projects that never succeed and make it to market. And it funds the research and development for potential future products.

The only people that know how much profit Apple make off each iPhone X is Apple, because they're the only ones who know how many millions or even billions they spent over 5 years in developing it. And it's a figure that changes constantly.
If no one else buys an iPhone X after this point, they'll likely make a loss. At some point over the next 12 months, they'll break even and then start making a profit. but we won't know when that is and they won't tell us.
 
gentleman00 said:
How many people would be able to pay a $1000 to buy an iPhone if monthly installments were not offered?
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There are in fact people that can't afford to buy the phone and really shouldn't regardless of financing, but when someone spends money there is a multiplier effect that takes place. For those who can afford to buy something without sacrificing a meal are benefiting more than just themselves. Every tiny financial transaction makes our economy turn.....but regardless of whether or not $1,000 for a phone is worth it, many don't think it's worth it and they don't have to buy it and your opinion on the matter doesn't mean ****. If you don't want to buy it don't buy it, what others spend their money on is their business.

I am about to spend way more than that on a Disney vacation for my family, and the value on that will no appreciate like the value on your house.
 
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Well, let's look at your sig, you say you have a Note 8? That's 929 + tax RRP - hardly any difference, and the reviews of that device do make me laugh:

http://bgr.com/2017/09/19/now-that-...-galaxy-note-8s-biggest-gimmick-is-the-price/

I don’t have any inside scoops on the bill of materials for the Galaxy Note 8, but it seems to me that Samsung hiked the entry price of the Note 8 just because it knew that Apple was going to do the same thing with the iPhone X.

Think about it, in a world where the iPhone still sets the bar in the mobile business, launching a phone with an iPhone-like price sends the message that your new phone is on par with the latest iPhone, if not better.

Yes, it’s all about perception here. And Samsung, just like Apple, can choose to price its products however it sees fit. There’s nothing wrong with that.

But the $930 Galaxy Note 8 is not on par with the $999 iPhone X when it comes to hardware, performance or novel features. Not even with the $699 iPhone 8 or $849 iPhone 8 Plus. These two “boring” iPhones are just as powerful as the iPhone X.

This year’s Galaxy Note 8 competes against the iPhone 7/Plus family at best, regardless of what its official price may imply.
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I won't add anything new to this thread except the fact that I buy what I like.

I also enjoy Wesley Snipes films from the 90's and like Bono from U2. Both avoided to pay taxes. I don't care of the U2 haters saying they tried to force down a mediocre album onto their phones a few years back.

"I Still Haven't Found What I'm Looking For" by U2 is my favorite song of all-time. Not "Pride", "With or Without You".. I can listen to that song every morning or riding a traveling tour bus across Europe. My U2 also-rans are "One", "Electrical Storm", and "Streets With No Name". I like songs that uplift me.

What makes you think I love "Under Pressure" by Queen f. David Bowie so much? I understood the message. Michael Jackson was probably a pedophile and Whitney Houston was a junkie. I don't care. I like their music. I idolize Michael Jordan even if he is a d bag.

Apple isn't perfect. Just like what you like.
 
The BoM is estimated to have given Apple a 5% increase in profit versus the iPhone 8. So it's theoretically possible they are making at least 5% more profit on each iPhone X sold against other models. Apple averages and shoots for around 40% margin on each iPhone sold, so maybe Apple is making 45% on the iPhone X. This is hardly grotesque profiteering by historical standards, and given how awesome iPhone X truly is - I think Apple deserves the money.
 
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