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

Discussion in 'iPhone' started by coolwater, Jun 24, 2009.

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  1. coolwater macrumors 6502a

    coolwater

    Joined:
    Jun 8, 2009
    #1
    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.
     
  2. chrmjenkins macrumors 603

    chrmjenkins

    Joined:
    Oct 29, 2007
    Location:
    CA
    #2
    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.
     
  3. AppleMark macrumors 6502a

    AppleMark

    Joined:
    Jun 17, 2009
    Location:
    The CCTV Capital of the World
    #3
    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.
     
  4. darienlm32 macrumors newbie

    Joined:
    Jun 24, 2009
    #4
    That's not such a huge profit margin.. seems ok.
     
  5. jav6454 macrumors P6

    jav6454

    Joined:
    Nov 14, 2007
    Location:
    1 Geostationary Tower Plaza
    #6
    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.
     
  6. benlee macrumors 65816

    benlee

    Joined:
    Mar 4, 2007
    #7
    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.
     
  7. rdowns macrumors Penryn

    rdowns

    Joined:
    Jul 11, 2003
    #8
    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.
     
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