If it costs Apple $179 to build a 16GB 3G S

[coolwater]

The total manufacturing cost of $178.96 for the iPhone 3G S with 16 GB of memory includes a BOM (bill of materials) cost of $172.46 and an assembly cost of $6.50, according to the Teardown Analysis Service of El Segundo, Calif.-based iSuppli.

Toshiba is the main supplier to Apple in terms of share of the cost of materials.

The company supplies 16 GB of NAND flash memory, which costs Apple about $24. It also provides the iPhone 3G S' 3.5-inch, 16-million color, 320-x-480 pixel display at a cost to Apple of about $19.25, as well as a touch-screen assembly, which costs Apple about $16, iSuppli said.

I thought it costs Apple around $300-$350 to build an iPhone. But, if it's only $179-$235, then I'd feel lighter asking for OLED and 5MP camera with better battery in next iPhone.

Yeah, some would say things like millions of dollars for R&D blah blah, but Apple would still have plenty of cash left and we wouldn't need to worry about Apple's R&D budget. Also, iPhone doesn't require a huge marketing budget.

No wonder why Apple's stock is up more than 70% year to date.

ALSO, if AT&T is buying iPhones from APPLE at $300-$400(my guess), so much for the great AT&T subsidy.

 

[chrmjenkins]

I thought it costs Apple around $300-$350 to build an iPhone. But, if it's only $179-$235, then I'd feel lighter asking for OLED and 5MP camera with better battery in next iPhone.

Yeah, some would say things like millions of dollars for R&D blah blah, but Apple would still have plenty of cash left and we wouldn't need to worry about Apple's R&D budget. Also, iPhone doesn't require a huge marketing budget.

No wonder why Apple's stock is up more than 70% year to date.

ALSO, if AT&T is buying iPhones from APPLE at $300-$400(my guess), so much for the great AT&T subsidy.

But you see man... if you back to those components, I'm sure they're jacking Apple on the price. Probably tripling it. So it's their fault. But then again, the guys that supplied them probably jipped them too. In the end, blame the earth.

 

[AppleMark]

I thought it costs Apple around $300-$350 to build an iPhone. But, if it's only $179-$235, then I'd feel lighter asking for OLED and 5MP camera with better battery in next iPhone.

Yeah, some would say things like millions of dollars for R&D blah blah, but Apple would still have plenty of cash left and we wouldn't need to worry about Apple's R&D budget. Also, iPhone doesn't require a huge marketing budget.

No wonder why Apple's stock is up more than 70% year to date.

ALSO, if AT&T is buying iPhones from APPLE at $300-$400(my guess), so much for the great AT&T subsidy.

It is called good commercial sense.

Do you think the material in a Hugo Boss suit and the chinese labour to make it costs $800?

Do you think that the Bugatti Veyron's (link below) mechanical parts amount to $2.4?!

http://www.autoblog.com/2009/06/18/for-sale-bugatti-veyron-16-4-production-001/

Nope!

A lot of the money you do not mention is the millions of dollars spent on develpment etc.

And of course, Apple is a business aimed at the high user end market, not a non-profit organisation.

You do not get what you pay for in life, you pay for what you want.

 

[darienlm32]

I thought it costs Apple around $300-$350 to build an iPhone. But, if it's only $179-$235, then I'd feel lighter asking for OLED and 5MP camera with better battery in next iPhone.

Yeah, some would say things like millions of dollars for R&D blah blah, but Apple would still have plenty of cash left and we wouldn't need to worry about Apple's R&D budget. Also, iPhone doesn't require a huge marketing budget.

No wonder why Apple's stock is up more than 70% year to date.

ALSO, if AT&T is buying iPhones from APPLE at $300-$400(my guess), so much for the great AT&T subsidy.

That's not such a huge profit margin.. seems ok.

 

[anjinha]

 

[jav6454]

I thought it costs Apple around $300-$350 to build an iPhone. But, if it's only $179-$235, then I'd feel lighter asking for OLED and 5MP camera with better battery in next iPhone.

Yeah, some would say things like millions of dollars for R&D blah blah, but Apple would still have plenty of cash left and we wouldn't need to worry about Apple's R&D budget. Also, iPhone doesn't require a huge marketing budget.

No wonder why Apple's stock is up more than 70% year to date.

ALSO, if AT&T is buying iPhones from APPLE at $300-$400(my guess), so much for the great AT&T subsidy.

Well, its not R&D only. You have royalties to be paid (many patents), you also have manufacturing, transportation and marketing costs. So even though it seems component wise its cheap to make an iPhone we can't assume Apple has ample money left. They may or may not, but hey, we can always wait.

 

[benlee]

perhaps you will get OLED, better battery, and 5MP in Camera. But that has nothing to do with what it costs to make the current iPhone. Besides, OLED and 5MP camera are not all about $. Other factors account for the choices.

Lastly, you obviously don't know that the purpose of a company is to make $, as much money as possible.

 

[rdowns]

The cost to manufacture is only a small part of Apple's cost. You have to add in R&D, sales and marketing costs, advertising, shipping the suckers from half way around the world, markup for their resellers and a few I'm sure I'm leaving out.

Do Apple make high margins? You bet. Don't think the price is fair, don't buy it.

 

[SilentPanda]

Please continue this topic in the main page story:

https://www.macrumors.com/2009/06/2...-reveals-178-96-parts-and-manufacturing-cost/