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iPhone 4 cases will cost Apple $175m
- Thread starter voldermort
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175 million? Lol Steve made that before lunch today. That's pocket change. He pulled that money outta his change tray in his mercades.
That's like me or you having to fork up 3.75$. I believe we could handle that!
That's like me or you having to fork up 3.75$. I believe we could handle that!
I wonder why it's going to cost that much. Haven't they only sold 3 million iPhones up until the announcement last Friday? I guess at $30 per case, and expecting to sell a couple more million, it could end up costing them $175 million. They should just give everyone who bought an iPhone up until now, $1 million, they'd save money 
.
.Earnings report for 2nd quarter today.
$15 billion in revenue
4 billion net profit in 3 months.
And scary thing is this only includes iPhone 4 sales from June 24-30th.
$175 million for free cases/bumpers is nothing to Apple.
And they haven't released iPhone 4 to all parts of the world. And they haven't released iPad to all countries either. Scary how much Apple is making.
$15 billion in revenue
4 billion net profit in 3 months.
And scary thing is this only includes iPhone 4 sales from June 24-30th.
$175 million for free cases/bumpers is nothing to Apple.
And they haven't released iPhone 4 to all parts of the world. And they haven't released iPad to all countries either. Scary how much Apple is making.
yep, so 175 million was a laughable joke that should not have even had an article about it on that website. Apple has really started to bloom ever since the iphone in 2007.
Not that it was in bad shape then, it was fine. But ever since the iphone, apple has really taken off. They have sold something like 100 million "i" devices? its really quite amazing
This article is ****ing pathetic. You really think Apple is going to be paying $29/case? Their own bumpers cost them pennies, and 3rd party manufacturer cases they get for less than 1/3 of the retail cost; and will most likely get large discounts with such bulk purchases.
Apple isn't spending $175 million dollars. Thats just what they could have made if they didn't give the cases away for free. What it will actually cost them is much lower than that.
$15.7 billion over three months - that's about $174,444,444 million per day.
So yeah, free cases means the loss of a single day's revenue.
Not insignificant, but not much of an issue either.
(Although that doesn't account for the extra work they (might?) have done, possible lost sales we'll never hear about, extra returns if any, etc.)
So yeah, free cases means the loss of a single day's revenue.
Not insignificant, but not much of an issue either.
(Although that doesn't account for the extra work they (might?) have done, possible lost sales we'll never hear about, extra returns if any, etc.)
Yeah, but they're not longer to sell them for $29 either, hence why it is 175m in lost revenue.
I know that; but it's foolish to count your chickens before they hatch, especially when said chickens is less than 1/11th of your record breaking revenue quarter.
Your statement would have been better if you put the word "much" like this MUCH!!!!!!!
$175 Million is over 6 million iphone bumpers.
No. The numbers don't add up. It is MUCH LOWER.
Holy God. The cost of material doesn't equal the cost to produce a product. Obviously there's a huge markup, but get a grip. And, really, it's laughable that people are NOW bitching about Apple's overpriced products.
Wirelessly posted (iPhone: Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_0 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8A293 Safari/6531.22.7)
$175 million also bought them priceless airtime on every major news station in the western hemisphere, often multiple times. The amount of free advertising they've gotten in the past month would probably approach $1 billion if it were in the form of traditional paid commercials. Some may say it's not the best press they've had; others would say there's no such thing as bad press.
$175 million also bought them priceless airtime on every major news station in the western hemisphere, often multiple times. The amount of free advertising they've gotten in the past month would probably approach $1 billion if it were in the form of traditional paid commercials. Some may say it's not the best press they've had; others would say there's no such thing as bad press.
I wonder why it's going to cost that much. Haven't they only sold 3 million iPhones up until the announcement last Friday? I guess at $30 per case, and expecting to sell a couple more million, it could end up costing them $175 million. They should just give everyone who bought an iPhone up until now, $1 million, they'd save money
last I checked, 3 million X 1 million is not less than 175 million
its actually 3 trillion
as rich as they are, Apple has nowhere near 3 trillion dollars
What a stupid article.
With 3 million phones sold to date, $175M is enough for $58 per phone.
Apple makes about $250 profit per phone. So could easily afford to hand out this cash.
... But to provide a case for each customer is more likely to cost $2-$5 per phone.
Presumably people go into low-end journalism once the fail their math class.
C.
EDIT. Okay - read the notes from the conference call.
The loss is not the cost of the bumpers - the $175 is the profit they would have made from selling the bumpers at a profit.
The article is still crap. The profit margin is HUGE on a bumper BUT not everyone (hell I doubt 1/3) will want a bumper vs the 3rd party products. How can they lose $175M? At $28 profit per bumper, they need to sell 6.25 million of them.
Im tired of all these people who cannot logically think for themselves and realize that these numbers are erroneous. Doesnt take much though process to realize they are much inflated and absurd.
Also, only in economics would you find a "loss" as something you MIGHT have sold. You cannot lose money based on projected numbers of the future.
With Apple buying 3rd party cases...they will negotiate a hell of a deal with the manufacturer. They will not even come close to paying retail. They will pay wholesale at best.
Lets get the numbers in perspective... I got a Blackberry Pearl a few years ago. I bought a rubber case for the phone at Best Buy employee cost which is cost + 10%. I paid $2.30 and the retail was $15. Now that was employee costs. Wholesale was $2.09. Apple isnt paying $15 per case... try $2 or less.