The margins quoted here are almost certainly gross margin. It's the only one that makes sense when comparing Company X with Company Y. Net margin can be skewed by all manner of company/situation-specific items, especially to do with tax, debt servicing and so on...
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iPhone 5s Component Costs Estimated to Begin at $199
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The margins quoted here are almost certainly gross margin. It's the only one that makes sense when comparing Company X with Company Y. Net margin can be skewed by all manner of company/situation-specific items, especially to do with tax, debt servicing and so on...
iPhone 5 Component Costs Estimated to Begin at $199
iPhone 4S Component Costs Once Again Begin at About $188
16 GB iPhone 4 Component Costs Estimated at $187.51
16 GB iPhone 3GS Teardown Reveals $178.96 Parts and Manufacturing Cost
Component Cost Of iPhone 3G Estimated By iSuppli at $173
iPhone Teardown Puts Components at $220
iPhone 4S Component Costs Once Again Begin at About $188
16 GB iPhone 4 Component Costs Estimated at $187.51
16 GB iPhone 3GS Teardown Reveals $178.96 Parts and Manufacturing Cost
Component Cost Of iPhone 3G Estimated By iSuppli at $173
iPhone Teardown Puts Components at $220
How dare we talk bad about Apple. We should be paying them 1000$ for a unit and come to the stores on our knees.
How much does a textbook "cost" to make? The pages, ink, binding, etc?
According to a friend of mine in the publishing industry: about $3. So why do publishing companies charge $100 or $150?
Dirty capitalists! (/sarcasm)
According to a friend of mine in the publishing industry: about $3. So why do publishing companies charge $100 or $150?
Dirty capitalists! (/sarcasm)
autrefois
macrumors 65816
That's right, unfortunately.
That's right, unfortunately.
?? That makes no sense, unfortunately.
This isn't really any different than historic iPhones, or even what Samsung's internal costs are as compared to retail pricing
The S4 costs ~$240 to build, yet the 16gb model (out of contract) costs $639. They don't charge as much for memory upgrades, and their margins aren't as Big as Apple, but it is still a substantial gap.
Though the component prices in this article may not be current anymore.
http://allthingsd.com/20130508/samsung-galaxy-s4-costs-237-to-build-teardown-analysis-shows/
Remember, with both phones you also get a pile of software bundled with them too.
The S4 costs ~$240 to build, yet the 16gb model (out of contract) costs $639. They don't charge as much for memory upgrades, and their margins aren't as Big as Apple, but it is still a substantial gap.
Though the component prices in this article may not be current anymore.
http://allthingsd.com/20130508/samsung-galaxy-s4-costs-237-to-build-teardown-analysis-shows/
Remember, with both phones you also get a pile of software bundled with them too.
One of the most incredible things that I learnt from an article on here recently is that if they fill a FedEx plane with iPhones it only costs them the equivalent of 50cents each to get the phones from China to the US!
No mention of the difference in cost between the plastic case and the metal one? The general assumption is that the switch to plastic was motivated by significant savings over the previous metal version. If that's not the case then it's hard to understand why they bothered, particularly a switch that many people are assuming is a cheaper build.
The day that Apple changes it's pricing structure for additional storage, including possibly cutting the cost of the increases, is the day that consumers give clear and consistent feedback that storage costs are the number one issue with the iPhone, and furthermore consumers vote with their wallet and start to buy other manufacturer's phones as a result.
Since that is not happening, Apple will continue to charge what it can get away with for iPhone storage. It's called capitalism.
Does anybody know the cost of the paint and canvas that is used to paint a masterpiece? A bit extreme but you get my drift...
Since that is not happening, Apple will continue to charge what it can get away with for iPhone storage. It's called capitalism.
Does anybody know the cost of the paint and canvas that is used to paint a masterpiece? A bit extreme but you get my drift...
You and MacRumors got immediately defensive. MacRumors adding words suck as "Numerous other cost," and going on with a long list, when it seemed that they could have just mentioned that it doesn't include other manufacturing cost.
R&D and numerous other stuff goes into making other phones, and video games system even sell at a loss to make it up later. But Apple margins are so much higher than the others. And I applaud Apple for that, because it's the smart thing to do. They can make doo doo and people are still going to buy it. I don't remember for which computer it was, but they were selling Core 2 Duos at full price over a year and a half after Core i7 came out. Bottom line, people are not knowledgeable.
Article says cost of assembly is $8. R&D is a factor worth considering; plus, Apple's customer service is unmatched. They also leave out the headphones and wires, which are probably in the low single dollars, and the cost for packaging, which is low, but Apple makes an art out if it; then there's the operating system, which may be free on Android, but Apple's is always up to date---you're largely paying for the experience/reliability.
Shocking that the general assumption could be wrong.
Not really. They provided an explanation. Better colors.
And I'd guess it's a whole lot easier to manufacture quickly.
Plus, they can move the specialized equipment for the aluminum case to 5S production.swingerofbirch
macrumors 68040
Even if it was built for $99 i would still pay asking price.
Arguably best phone on market
Arguably best retail experience
Arguably best after sales experience
Arguably best cloud integration
Arguably best app support and availability
So everything that matters they are arguably the best. You get what you pay for, not just the physical object you hold.
R&D costs and of course marketing costs
Arguably best phone on market
Arguably best retail experience
Arguably best after sales experience
Arguably best cloud integration
Arguably best app support and availability
So everything that matters they are arguably the best. You get what you pay for, not just the physical object you hold.
R&D costs and of course marketing costs
Apple doesn't make $200 more on the 64GB unit. When a product sells for $650, the manufacturer doesn't get paid $650 for that product. For example, Walmart is not selling products for manufacturers for free.
There are costs of doing business: contracting manufacturers, the tools needed to assemble (not to mention updating them and maintaining them); paying a premium price for a reliable assembler line like Foxconn---the cost of secrecy has longterm benefits (yes, and it gives a reason for MR)...etc.
Not only R&D. The manufacturing tooling (including pre-payments for expanding display and semiconductor fabs, & etc.) requires $Billions in investment.
Apple can't rip you (or anyone else) off unless you voluntarily give them your credit card. If anybody thinks the memory isn't worth it, they can just keep their money in their pocket. It's called willpower.
I get the extra storage because it's far far cheaper for me to do that, than to find and spend $Billions for the tooling needed to make my own smartphone.