Not sure what R&D is but I bet the number of bulk ordered 16gb is way cheaper then the 64 bulk.
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iPhone 4S Component Costs Once Again Begin at About $188
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Not sure what R&D is but I bet the number of bulk ordered 16gb is way cheaper then the 64 bulk.
Why are you using subsidized price and not the real price? Th 3gs is $400, and its almost 3 yrs old.
As for android phones, their components costs should be much higher than Apple's. It could be the higher spec that they're always showing off, or/and the fact that they get worse pricing because they deal in lower volumes.
Those wouldn't be part of COGS.
R&D is a separate line item in Apple's cash flow statement. Shipping, advertising, retail store rent, salaries, etc. would go under the SG&A line item.
Apple does not break out those expenses per product.
As a percentage of revenue, Apple actually spends very little on R&D. There are multiple interpretations on this. My own choice of interpretation is that Apple is very savvy when to spend R&D dollars; they certainly get more bang to their buck.
Also, Apple economizes on R&D because it has technology that spans multiple product lines. Investing R&D bucks in iOS would support the iPhone, iPad, iPod touch, Apple TV, and whatever unreleased iOS-based devices they have up their sleeve (AirPort? Time Capsule? other gadgets?).
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Wow, people who buy 32gb and especially 64gb are not smart. They pay $100 or $200 more for same phone but extra memory only cost like $10. These peoples not good at math apparently and buy rip off model. Ha.
It isn't $10 more... To get an SSD with that capacity in that form factor is pretty expensive.
Wow. Do you read article?? I see answer is no, but you still comment which is strange. So let me explain in simple way. Article says price for 16gb, 32gb, and 64gb. Is small difference. Is flash memory not SSD. You are funny.
Maybe its not $10, but there is a high markup for 32 GB and 64 SSD that makes it a lower value purchase.
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Wow, people who buy 32gb and especially 64gb are not smart. They pay $100 or $200 more for same phone but extra memory only cost like $10. These peoples not good at math apparently and buy rip off model. Ha.
Very true but it's unlike a MacBook where you can avoid the extortionate RAM upgrades Apple offer and do it yourself much cheaper.
You can hardly buy the 16 GB model and upgrade the memory yourself. Plus higher memory iPhones hold their resale value better so it isn't too bad. Just gotta take the hit I guess to have more memory.
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Wow, people who buy 32gb and especially 64gb are not smart. They pay $100 or $200 more for same phone but extra memory only cost like $10. These peoples not good at math apparently and buy rip off model. Ha.
That is not how pricing strategies work either. Do you really think that if they sold each model for $10 more, anyone would buy the low end model?
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Sure, let's compare unsubsidized price as well. How much does an unsubsidized iPhone 3GS cost, and what did it cost when it first came out? Same question for the 4. You're wrong either way.
As for android phones, the topic was prices dropping or not. The newest android phones just announced are $299, same as the previous top of the line phones.
This doesnt include the cost of development.
*What im saying is this is NOT what it costs apple to make an iPhone, you cant JUST look at the cost to build one and be done with it. They charge a completly fair price for the 16GB, if anything, i suspect they lose money on the 16GB model, and make it back on the 32 and 64.
*What im saying is this is NOT what it costs apple to make an iPhone, you cant JUST look at the cost to build one and be done with it. They charge a completly fair price for the 16GB, if anything, i suspect they lose money on the 16GB model, and make it back on the 32 and 64.
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What omissions? 25 aren't COMPONENTS, are they? And 1 affects pricing on their components, but aren't components themselves.
There are other costs. Duh. Every single article and every single thread about these articles points this out. Every single time. (Which doesn't stop posts like your every single time.) It's still interesting to know how much the costs of the physical parts comes down to.
Thank you for personal insult. Sorry I only speak 3 languages but not perfectly.
With iCloud and iTunes match and other streaming of media, the decision to pay for more memory is more silly.
If Apple wanted, they can make 32gb the low end and put more pressure on android makers with little effect on margin. But you do not see this. Surprise.
If you want something cheap, go to ikea. If you want quality, go to a carpenter.
Same rules apply here.
I've never felt ripped off buying Apple.
Same rules apply here.
I've never felt ripped off buying Apple.
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Wow, people who buy 32gb and especially 64gb are not smart. They pay $100 or $200 more for same phone but extra memory only cost like $10. These peoples not good at math apparently and buy rip off model. Ha.
If they want that much storage, they have to pay. Very few other phones offer 32GB of storage inside, much less 64GB. If it's that or nothing, some people may choose the extra cash. There's no alternative.
Also, manufacturing cost is estimated at $8, so that's not a huge chunk of the price. I wonder how much the cost would go up for apple to have it manufactured domestically.
The only thing I have a problem with is that the 64GB costs $200 more for what amounts to a $60 part... a part that any Android user could buy and use themselves in their phone.
Sucks that Apple not only won't let us increase the storage space, but they'll charge far more than they should for what they offer.
Sucks that Apple not only won't let us increase the storage space, but they'll charge far more than they should for what they offer.
All of the articles across the web discussing the mere 50 cents difference in component cost between the 4 and the 4S all seem to be conveniently glazing over that the comparison is between the iPhone 4 in July of 2010 versus he iPhone 4S in October of 2011. I mean, of course 2011's $199 model should cost almost the same to build as the 2010's $199 model. How is this news?
Obviously the iPhone 4 no longer costs $188 to build, since its components have decreased significantly in price over the last 15 months. Which is why Apple can now sell it for $99 (with the only difference being the storage cut in half).
Obviously the iPhone 4 no longer costs $188 to build, since its components have decreased significantly in price over the last 15 months. Which is why Apple can now sell it for $99 (with the only difference being the storage cut in half).
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Wow, people who buy 32gb and especially 64gb are not smart. They pay $100 or $200 more for same phone but extra memory only cost like $10. These peoples not good at math apparently and buy rip off model. Ha.
Apple's cost is irrelevant. If the ability to store more data on your phone is worth $300 to you, then the larger capacity iPhone is a good value for you. Take a microeconomics class -- this is not an insult, but an invitation to learn some very interesting information about how pricing works.
Most other phones don't need to offer 32GB or 64GB of storage inside since they allow users to pop in a SD card to increase the stock storage. For the same $200 Apple charges for just a 48GB increase, other phone users could buy a pocketful of cards increasing their total space by over 148GB.
Just for comparison, what are the two prices for the 16/32 gig versions of a typical Android phone? How much more for the extra space? And how many 64 gig Android phones are available?
I guess some have options for adding cards, so that's another variable.
I guess some have options for adding cards, so that's another variable.
$100 memory increments retail?
That seems criminal. It's especially out of whack in the iPod Touch line with 8GB then 32GB. You are paying a premium regardless of how the memory prices have gone down.
It's like the printing companies with ink. They don't make money on the printer. They make money on the ink.
That seems criminal. It's especially out of whack in the iPod Touch line with 8GB then 32GB. You are paying a premium regardless of how the memory prices have gone down.
It's like the printing companies with ink. They don't make money on the printer. They make money on the ink.
Where do you get that from?
You're not very objective as your signature seems to imply. You seem bigoted and blind worshiping against Apple in every way.