iPhone 5 costs $168 in parts to make!

Discussion in 'iPhone' started by Big.Mac.Daddy, Sep 14, 2012.

  1. Big.Mac.Daddy macrumors 6502a

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    #1
    http://www.idownloadblog.com/2012/09/14/16gb-iphone-b-bom-168-ubm-techinsights/
    [​IMG]

    That is some serious chedda' being made off each iPhone 5 :cool:
     
  2. dndandrea macrumors 6502

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    Feb 10, 2010
    #2
    You didn't factor in research and development. There's not a HUGE gap of profit being made as it is portrayed in thi quote of yours.
     
  3. xAnthony macrumors 65816

    xAnthony

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    #3
    Yeah, because research and development, and all the months put into perfecting the design costs nothing...
     
  4. Eddyisgreat macrumors 601

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    Oct 24, 2007
    #4
    R&D, SHIPPING AND MARKETING R FREE FOLKS.

    Every time.
     
  5. TG1 macrumors 6502a

    TG1

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    #5
    Someone needs to add in the cost of labor for assembly/production.
     
  6. Type121 macrumors regular

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    #6
    A hell of a lot more goes into the true cost to sell an iPhone than simply the sum total of the parts cost.
     
  7. Big.Mac.Daddy thread starter macrumors 6502a

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    #7
    The title of the thread says "The iPhone 5 costs $168... IN PARTS... to make" ;)
     
  8. BLUElightCory macrumors newbie

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    #8
    I doubt it's very different for any smartphone on the market.
     
  9. xAnthony macrumors 65816

    xAnthony

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    #9
    And the bottom of your posts says "That is some serious chedda' being made off each iPhone 5"
     
  10. lockerc18 macrumors 6502

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    May 17, 2012
    #10
    And the human body is worth about $4.50, from the price of the chemicals in it.

    Now, about the R&D costs for THAT...
     
  11. Oakmhcky21 macrumors member

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    #11
    Add is labor cost, as well as the equipment and what not to actually make the parts, and shipping to the us.
     
  12. magpie maniac macrumors 6502

    magpie maniac

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    #12
    Someone wasn't paying attention during microeconomics class.
     
  13. dukebound85 macrumors P6

    dukebound85

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    #13
    Yet, you post this...


    So no, not some "serious chedda" being made when you factor in all the costs to make the phone....you know like R&D, manufacturing, advertising, patent licensing, logistics, labor, etc
     
  14. steph280 macrumors member

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    #14
    I'd bet if you were to buy the parts yourself and try to build one from scratch (if it's even possible), it will cost you way more.
     
  15. Cougarcat macrumors 604

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    #15
    While true, You can bet that the iPhone has one of the largest profit margins of any Apple product. Just look at the massive difference in cost between the iPod touch and the unsubsidized iPhone.
     
  16. nostresshere macrumors 68030

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    Dec 30, 2010
    #16
    These sort of posts make me want to reach out and smack somebody.

    It does not matter if it costs $.99 to make it. Nor does it matter about marketings, shipping, packing, advertising, development, insurance, building overhead, etc etc etc

    They can sell it at whatever freakin cost they can get. Simple stuff.
     
  17. Dwalls90 macrumors 601

    Dwalls90

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    #17
    No freaking way.

    Way more reputable sources pointed at the 4 and 4S being a little under $200 each. The 5 is also probably around that ballpark.

    Apple turns a final margin of about 30% on iPhones. There is no way they are pulling a margin of 85% on manufacturing alone.
     
  18. dccorona macrumors 68020

    dccorona

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    #18
    forget the cost of labor. That glass matching machine they use can't be cheap
     
  19. davefromca macrumors 6502

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    #19
    Wow 170 in parts alone is actually quite a bit invested.
     
  20. onthecouchagain macrumors 604

    onthecouchagain

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    #20
    Apple makes anywhere from 49-58% profit from a single iPhone.

    Chew on it.
     
  21. Geckotek macrumors G3

    Geckotek

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    #21
    It'll be interesting to see if iSuppli comes up with the same number.
     
  22. trouble747 macrumors 6502

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    #22
    This just in: Business sells product for profit
     
  23. ThatsMeRight macrumors 68020

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    #23
    Yep. But the profit margin is still huge, though: between 40 and 50%.
     
  24. Geckotek macrumors G3

    Geckotek

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    #24
    That's odd, because the BOM has been floating between $180-$190 since the 3G.
     
  25. thadoggfather, Sep 14, 2012
    Last edited: Sep 14, 2012

    thadoggfather Suspended

    thadoggfather

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    #25
    Interesting, $188 is what 4S was at launch as I remember:

    http://news.cnet.com/8301-13506_3-20123112-17/iphone-4s-parts-cost-$188-study-finds/

    Obviously, it's in the $130's for 4S now, because of economies-of-scale.

    Don't forget R&D, time, yadda yadda....

    $168/188 isn't the bottom line with overhead.

    Still, that $20 decrease in cost, with LTE, A6, and 4" also not taking into account mild deflation from 2011 to 2012, that's a hell of a feat.

    Also, you might not want to look at the increments in cost (for 4S) between storage:

    $19.20
    $38.40
    $76.80

    for 16-32-64 respectively. It's probably even narrower and less now with the iPhone 5.

    But that's no surprise that you're paying a premium for little increase in cost because storage needs.

    I had a 4S 32GB, preordered a 5 32GB this time as well. "Didn't like" forking over the extra $100, but I had a full upgrade so I used it (while keeping unlimited on at&t, woot).

    depending on how you frame things, all capacities have their downfalls.

    $400 vs $850 is like % off total with subsidy than $300 vs $750 even though they both effectively discount it $450.
     

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