with the phone costing more, I'm glad Apple didn't raise the price(now that would be greedy)
Except Apple did raise the price, at least in Europe.
with the phone costing more, I'm glad Apple didn't raise the price(now that would be greedy)
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.
As long as people think that R&D, facility maintenance, labor, shipping, and other costs are free, those comments will be necessary.
And yes, that doesn't include that evil "profit" thing that companies account for.
You're way off on your reply to that other member. He was saying to expect the usual comments here of Apple being greedy.No, Apple is a business... a corporation... and the purpose of a corporation is to "increase shareholder wealth". If you think Apple is greedy, then you don't understand capitalism (whether that's good or bad). They are also not greedy simply because you don't *need* to buy what they are selling. Heck, you can get a great Apple device for free now with a mobile plan. It think they are going out of their way to make them affordable.
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.
You're way off on your reply to that other member. He was saying to expect the usual comments here of Apple being greedy.
I'm surprised radio shack had the resources to construct its own aluminum alloy process and resell it to apple.I'm really impressed that Apple was able to simply walk into to RadioShack and buy all these parts for ~$236
They're terrible comparisons to make. Those two companies sell software and/or advertising. You may not think it, but they're in completely different sectors of the industry. Compare any other hardware company: sony, samsung, LG etc and you'll realise how unusual Apple's margins are in the industry.
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.
No, Apple is a business... a corporation... and the purpose of a corporation is to "increase shareholder wealth". If you think Apple is greedy, then you don't understand capitalism (whether that's good or bad). They are also not greedy simply because you don't *need* to buy what they are selling. Heck, you can get a great Apple device for free now with a mobile plan. It think they are going out of their way to make them affordable.
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.
"NAND Flash is now so cheap it's almost irrelevant, but Apple monetizes this difference with consumers, to the tune of $100 for each additional step up in memory capacity," Rassweiler said. "For example, a 64 GB iPhone now costs Apple about $17 more to make than a 16 GB iPhone,
Except Apple did raise the price, at least in Europe.
[Queue posts about how this doesn't account for extensive R&D costs]
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?
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.
keep them coming....I am having a ballAhhhh, I was waiting for this article... where is my popcorn?
Cue the comments ====== Apple is greedy =======
Not an excuse but this is where most electronic retailers make their money - have you check for gold plated HDMI cables on Best buy?I don't mind paying high prices for their superior hardware, what really leaves a bad taste in my mouth is the arrogance of $29 3ft. cables etc.....
The time for 32BSteve said ''we don't ship junk'' Well, Tim clearly doesn't believe this since he's still selling the 16gb iPhone.
Maybe at that time, 16 was enough. Hell, maybe it was even a lot, like what 64gb is now. But times change, apps' size gets bigger and bigger and so do the photos and not to mention the video size when filming 4K. Clearly Tim wants to ship junk, because that's what a brand new iPhone with 16GB of storage is.
The 16GB over 32GB base is a pure profit (greed?) move. But there is some good logic behind it. I think this analysis is likely right on (it came out with the 6).
http://www.aboveavalon.com/notes/20...illion-in-2015-by-selling-16gb-iphone-66-plus
Eventually they need to go to a higher base model. Right now they are reaping the profit keeping it 16GB. With this plan, a good percentage of users step to 64GB (I do believe the 64GB model will be the top seller for the 6S). Then when they introduce 32GB base in the 7, some might step down, but they are banking that likely most will want to keep their space.
Apple can then do two things:
Introduce 32GB and keep the 64 and 128 the same for the same price.
or
they can double all the tiers as they have done in the past (this could be done in two stages with the above happening first, then double the top two).
Do this until 32GB is no longer adequate, rinse, repeat.