Yes I was at the Flea Market and I was able to build my own Iphone 6S for under $250. All the parts plus 4GB RAM and 256GB storage were available. The guy even threw in some teeth whiting sheets and a doggie snuggie for free.
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iPhone 6s Plus Component Costs Estimated to Begin at $236, $16 More Than iPhone 6 Plus
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Apple doesn't owe us doing 64GB iPhone as standard. Yes, it's annoying, but technically totally doable. If you use everything via Cloud services, it is possible to use 16GB iPhone and barely use any storage.
Also, this is the equivalent of BMW making their 320i with a single exhaust pipe. BMW knows people want dual or quad exhausts, but if you want that, you gotta pay up and get the 335i.
What's incredible about the topic is the minimal change of cost when assembly is factored in. I'd rather pay up and have my iPhone Made in US or somewhere in Europe.
Also, this is the equivalent of BMW making their 320i with a single exhaust pipe. BMW knows people want dual or quad exhausts, but if you want that, you gotta pay up and get the 335i.
What's incredible about the topic is the minimal change of cost when assembly is factored in. I'd rather pay up and have my iPhone Made in US or somewhere in Europe.
The prices have to be jacked up to cover all the returns of the fans who return 6-8 phones looking for the perfect one!!
Think you need to go back and re-read the original poster's comment because you sure as hell didn't understand it from what I can see.
People actually want 32gb standard.
Ummmm one is a 4 cylinder 2.0 and the other is a 6 cylinder 3.0...... And you think the difference is exhaust pipes??? You are not paying for the pipes lol
Btw, per Apple's last quarterly financial statement their gross margin was just under 40% and profit margin was 21.5%. For comparison, Microsoft's gross margin was 66.8% and their profit margin was 13%, but that includes the $10B write down of Nokia/restructuring costs. Add that $10B back and Microsoft's profit margin for FY2015 was 23.7%. Google's gross margin last quarter was 38.3% and their profit margin was 21%. Just a little context for those who think Apple's margins/profits are obscene.
Don't forget the R&D that goes into all of this. Plus, I'm assuming the company you work for (if you have a job) tries to maximize its profits? If you're not happy with the profits, don't buy Apple products.
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Kinda sucks how one of the cheapest components (Flash) is the one Apple cripple, seeing as it's one of the most important bits. I'm sure they'll prove us wrong with the iPhone 7, even 32GB base would be a massive improvement for users.
Otherwise I have to say that the iPhone 6S is (protruding camera aside), as close to flawless as any iPhone has yet been.
Otherwise I have to say that the iPhone 6S is (protruding camera aside), as close to flawless as any iPhone has yet been.
Apple makes billions every quarter. They keep getting richer and richer. I'm a huge Apple fan and a huge customer of Apple, not only personally, but corporately too. I'm glad they are rewarded for their quality and ingenuity. However, this was pure greed and you would think they could give their customers a break. Especially lower and middle class America. I hope this hurts them. As a dedicated customer for over 10 years having spent 100s of thousands of dollars they are pushing my limits. I have other options as much as I hate to go there. They probably sat around the table telling themselves, if we keep the 16GB we will take the extra profit and give ourselves huge bonuses this year.
Agreed, the base should be at 32GB. This was a stupid executive/accounting move. Shame on you Apple and shame on you Tim Cook. Would it be too much to help your customers out a bit?
One can never be happy on Macrumors..... There is always something for people to moan about..... Didn't you know?
If I was seeking happiness, I would quit Macrumors
Yes, there are numerous costs that can't be capitalized because companies would go crazy and hide expenses as assets, but the underlying point is that there is far more expense related to these products other than raw materials, direct labor, and manufacturing overhead. (Which are what is often shown as the "price" of something.)
According to analysts, Apple's margins on iPhones (6 and 6s) are 40% or more on average. That's a large margin but Apple always has high margins (and shareholders expect it). If the 40% margin is correct (I don't think it is), it means the cost of producing the base model iPhone 6s is around $390 (components + wages + manufacturing + distribution + ...).
Apple's overall profit margins recently have been in the 21-24% range. iPhones make up 60-70% of Apple's revenue (63% in the most recent quarter of a total of $49.61 billion revenue), working out to an average of about $658 revenue per phone sold (includes all models - 5, 5c, 5s, 6, 6+). Apple had $10.7 billion profit the most recent quarter (21.57% margin). What does this mean?
If Apple's profit margins on the iPhone are really 40% that means Apple would have had a profit of $12.55 billion in the quarter just from iPhones. Because the entire company 'only' had $10.7 billion in profit, if this 40% profit margin was true for iPhones, all other parts of the company lost about $1.8 billion combined, which is not very likely. Yes, operating expenses, salaries, marketing, R&D, and so forth don't directly produce income and reduce profits but it's a stretch to believe that all other company divisions and products had a net loss for Apple. This means the iPhone really doesn't have as high of a profit margin as many people think it has. A 30% profit margin for the iPhone gives $1.3 billion profit from all other parts of the company combined. A 25% margin for the iPhone means other parts of the company bring in nearly $3 billion in profit. I'm not sure what the correct level is but 30% is a reasonable maximum profit margin for the iPhone with actual margins probably lower.
My analysis was imperfect because accounting rules can affect quarters differently and different iPhones certainly have different profit margins but it gives the general idea. Is this component cost inaccurate? I don't know but it's only a small part of the story. What my analysis shows is that in contrast to some people's objections, iPhones are not overpriced (by much - I'm including that stipulation because it's an arguable point). Apple could easily bump up base storage without much cost but cutting the cost of the phone from "premium" levels would drastically reduce Apple's profits and eat into the money Apple has to work on new products and work on supply chain issues.
Apple's overall profit margins recently have been in the 21-24% range. iPhones make up 60-70% of Apple's revenue (63% in the most recent quarter of a total of $49.61 billion revenue), working out to an average of about $658 revenue per phone sold (includes all models - 5, 5c, 5s, 6, 6+). Apple had $10.7 billion profit the most recent quarter (21.57% margin). What does this mean?
If Apple's profit margins on the iPhone are really 40% that means Apple would have had a profit of $12.55 billion in the quarter just from iPhones. Because the entire company 'only' had $10.7 billion in profit, if this 40% profit margin was true for iPhones, all other parts of the company lost about $1.8 billion combined, which is not very likely. Yes, operating expenses, salaries, marketing, R&D, and so forth don't directly produce income and reduce profits but it's a stretch to believe that all other company divisions and products had a net loss for Apple. This means the iPhone really doesn't have as high of a profit margin as many people think it has. A 30% profit margin for the iPhone gives $1.3 billion profit from all other parts of the company combined. A 25% margin for the iPhone means other parts of the company bring in nearly $3 billion in profit. I'm not sure what the correct level is but 30% is a reasonable maximum profit margin for the iPhone with actual margins probably lower.
My analysis was imperfect because accounting rules can affect quarters differently and different iPhones certainly have different profit margins but it gives the general idea. Is this component cost inaccurate? I don't know but it's only a small part of the story. What my analysis shows is that in contrast to some people's objections, iPhones are not overpriced (by much - I'm including that stipulation because it's an arguable point). Apple could easily bump up base storage without much cost but cutting the cost of the phone from "premium" levels would drastically reduce Apple's profits and eat into the money Apple has to work on new products and work on supply chain issues.
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I'm very well aware of that, but a GTI is also a 4 banger and it has dual exhausts. It's aesthetically pleasing and BMW knows that, so they use it to their advantage.
If people want a larger size, they can buy a larger size. This is a business and as unfortunate as it is, that's how Apple wants to roll.
Bad analogy, dude.
If an owner wanted dual or quad exhausts on a 320i, s/he could easily weld one on. There are plenty available on the market to choose from.
But you cannot easily swap out the 16GB chip with a higher capacity one on the iPhone.
If a 320i owner wanted to add more power to their car, that can easily be done too. Not so with an iPhone since Apple locks everything down.
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Nope - Apple is not greedy. To make profit - ANY company who makes hardware should really multiply BOM cost with 3-4x (BOM = Bill Of Materials) - that makes room for profits for Apple and their resellers - and makes room for marketing and R&D costs.
If a company does NOT charge 3-4 times BOM cost - you will usually find they go out of business quite quick.
They don't need to lower their salary. They could help out their loyal customers though. They can do both.
I am currently in the market to replace my Iphone 5. If Apple would have put a BIGGER battery in it I would have bought a 64gb one by now. Yes, Iphones are a premium price. I would pony up the $$$ for a bigger battery. I am considering the Nexus 5x or the upcoming Droid from Verizon.