Longevity and hardware cost have limited correlation. The longest supported iOS device to date, the iPad Air 2, costed $499. The iPhone 6 released the same year was more expensive and is no longer supported by iOS 15. Then there's the iPhone 11 Pro Max, which costed $700 more than the SE despite sharing the same CPU.
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iPhone 13 Pro Costs Around $20 More to Build Compared to the iPhone 12 Pro, Despite Being the Same Price for the Customer
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Meanwhile Indian Pricing of 13 Pro starts at $1610+999$ if you live in USA. In Europe iPhone 13 Pro starts from 1189€ which is ~1382$ 🤬
How much of that is your VAT (value added tax) that is built into the retail price. EU VAT averages 20%. What other regulatory fees do the EU and then the EU country governments collect that are built into the retail price?
We don’t have VAT in the US. Most states and, sometimes, county and city governments collect sales taxes that are added to the retail price and collected when sold. A 7.5% sales tax is not uncommon. In some cities, like a Seattle, sales tax is 10%. Some Cities are even higher. Electronics recycling fees, added at checkout in the US, are also not uncommon.
So, a $1,000 iphone doesn’t cost $1,000 in the US. It costs as much as $1,100. take out the 20% VAT from an EU purchase and the US equivalent price is $1,151, not $1,382.
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Only that the Samsung will be sold at $999 for two weeks and then the price will fall greatly
They’ll still make a godzillion. They’re just responding to the current phone market. They’ll make up the difference in services as they diversify
And bad for Apple, the company that produces the phones their millions of customers love to purchase; at around 600,000 per day on the average, every ay of the year.
Do remember this is before sales tax in the United States. Most (but not all) states charge sales tax. Germany, for example, charges a 19% VAT, which is included in the figure you provide. EU VATs range from 17% to 27%. It’s interesting that if one takes US$999 and applies a 19% tax, one gets just shy of $1189 ($1188.81). Apple does tend to convert dollars directly to euros ignoring that euros are worth more than dollars. They may justify this based on the higher corporate tax rates in Europe. Europe does get greater social support as a result than the United States.
State sales tax in the United States can range from 0% to 7.5%, and some localities add to this figure. This value is added in the checkout process and not advertised as part of the cost of the product.
I live in the US. My iPhone 13 Pro with case and tax comes out to $1398.00 cash money.
Huge because they have no clue what Apple pays for parts or the costs Apple puts in to R&D, testing, etc. It’s magical made up numbers to drive clicks.
It is not clear which models they are comparing A2636 refers to a Japanese model - all memory sizes of it. In the report they said that they normalized S21+ RAM size for BOM calculations but that does not say anything about the retail prices of specific model. Besides, when buying the Samsung phone at launch time (which is basically the only time they sell at MSRP) one gets $150...$200 worth of goodies.
They are. And they're not.
Both.🤨 Both are overprice and not. Because it's priced at what the market will bear. People are willing to dish out that kind of moolah for a phone, they're gonna sell it for that kind of moolah.
All lies and jest
Still, a man hears what he wants to hear
And disregards the rest
People ain't idiots. Some of us see the prices on the newest Samsung and say "day-um, that costs more than my computer." We unwashed masses settle for value models (lower midrange) and brand (Xiaomi).
Which is one reason why it’s a useless estimate when talking about the end user price. The other being they are guessing.
The higher the sales of iPhones (or anything) the less importance R&D has in the price. The profits reported by Apple clearly indicate that they have huge profit margins R&D or not. You can't realistically believe that they manage to get those profits without overinflating the prices.
A lot of replies in here don’t seem to understand the concept of purchasing power. It seems people think $1 is equal to £1 or €1. (It isn’t, and even though an argument can be made an iPhone is somewhat cheaper in the US, it may not be as cheap as you imagine). To add to this, there’s a great disparity within the US itself as far as the purchasing power of $1 as well as average and median income. The purchasing power of $1 is, on average, significantly higher in MS than CA, HI, and NY.
lol - OK, let's have the US store advertise for every permutation of local, city, and state sales taxes to advertise all prices... or break with other norms and not inude the VAT in the price (so then those consumers can complain that Apple misled them into thinking it was included). 🙄
Apple says "hahaha, so you think it costs us $570 to make an iPhone? sure it does...yeah we really want to give $20 back to everyone"
Lol they are all over priced and are all for profit company.
honestly it’s pointless to bash one or the other or being in Samsung when they are not even mentioned or vice versa.
also it’s really hard to tell how much they pay to make the phone without being internally
And say your figure is correct. It is so small I honestly don’t think it’s convincing lol
Yeah I didn’t go into details. I know it’s state based haha. It’s very weird for us Australian’s though.
“You add tax at the register what???”
Adjusting for the dollar and that’s $1631 AUD.
Not the same but closer. I have heard something about Apple does price based of average income of the country (Australians are wealthier apparently) this could be a conspiracy but apparently it’s similar to like McDonalds pricing around the world.