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iPhone 7 Component Costs Estimated to Start at $220
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Let's think about the real reason looking forward "12/12/12", Apple Pay is pushing to be the defacto digital payment method in the Apple Ecosystem. They now are pushing online payments, payment buttons on web-sites, more push to the POS market. Wonder who uses the little headphone jack other then you headphones? Oh yeah Square, PayPal Here, COIN, Quicken, and *insert* a bunch of others I'm missing. Apple has it's eye on something else, thankfully the "headphone" craze is glossing over the forward look for them.
Nailed it.
PS
The people with the "You forgot: R&D! Marketing! etc!" lines sound like crying babies. "People said the company I love is greedy! whhaaaa!". Why pay for all of that when you can just buy a ripoff for 1/3 the price? I'm loving my new PC's. WAY faster than anything Apple has in its' line and the laptop has a battery that lasts for dayyyyss. Now I just browse the web on my Macs... about all they are good for.
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Where do you imagine the money for R&D comes from? The money to outsource parts, assemble, design, market, package, ship and store millions of units worldwide? Where do you suppose the money that covers limited warranties comes from, the Apple Care all new phone owners are entitled to? Where do you suppose the money that goes into iOS development comes from? How do you imagine Apple pays its and other employees that make such a logistical operation run smoothly?
Oh, you want them to just pay out of pocket out of their own generosity? It's almost like they're running a business
Lol. You almost got it.
You are right. Inflation is the problem. If you read the news, the Fed is trying to create more inflation by monetary policy. Using QE and zero percent interest rates. They are the cause of inflation. Nothing you said is.
Inflation exists because the value of our money is declining.
http://www.theburningplatform.com/2...-learned-to-stop-worrying-and-loathe-the-fed/
BTW, there was no inflation in the 1900s because there was no Fed.
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In case you're being serious (and even if you're not), please provide direct links to the comments where people wrote that. This is a case where burden of proof resides entirely with you. I've been around Macrumors for some years (much longer than 2008 - I lurked and used a different user name previously) and have never read a post where someone said Apple had little to no profit margin (although that was true for net but not gross margin in 2004). Gross margins for Apple have been in the 30-40% range since 2005 (https://ycharts.com/companies/AAPL/gross_profit_margin) with net margins around the 10-25% range during that same period (http://www.gurufocus.com/term/netmargin/AAPL/Net-Margin/Apple-Inc).
So again, please provide links to comments here on Macrumors where commenters said there were low margins.
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Apple doesn't have a net profit margin of 40%. It's around 20%. 40% is gross.
Still challenging you to post an old post saying that, instead of making it up.
The only other possibility I see is that YOU did not get the joke.
Even the dumbest, most negative Apple person knows Apple makes billions and has billions of $$$$.
It's okay to be critical towards Apple, but it has to remain fair.
yeah, but the problem becomes the trade-off with unemployment. Over the course of history, when Inflation is up, employment tends to also be up, even if the employment wages aren't. When employment goes down, so generally does inflation. Then when you add in centralized bank rates to help spur lending. its a problem of a free(ish) market that really has no solution. Hence why the modern drive for higher minimum wages and in some countries, standard wages. its an attempt to remove inflation, interest rates and unemployment rates from ensuring that everyone makes enough to live on.
edit: its a great topic to debate about, if slightly off topic
Thank you I questioned that twice from smacrumon and I believe smacrumon is making that up!
Inflation has nothing to do with unemployment.
I added a chart to my original post. We had ZERO inflation in the 1900s and unemployment wasn't the issue. The only cause of inflation is the central banks tinkering with the value of our money.
Idiotic and baseless statement. My 2009 MP still does the heavy lifting for my photography business.
Pretty obvious you've not had your hands on a new PC in a while. So your follow-up statement is also covered by "Idiotic" at the very least.
Re: some people getting upset because of not including company overhead...
Folks, there's no reason to include other costs, because that's NOT what reports like this are about.
These reports are ONLY MEANT to be raw comparisons of hardware costs between manufacturers and models and storage sizes. (This is done for every major phone, not just ones from Apple.)
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If an ignorant reader thinks that this is the full cost, then sure, correct that reader's misconception.
But don't blame the hardware cost report for it. That's like blaming a road sign for only giving the miles to go, and not the actual cost of getting there
Point them instead at a company's official profit margins and bank account reports. Those are what let everyone know how much more or less they're paying for buying a particular brand.
Folks, there's no reason to include other costs, because that's NOT what reports like this are about.
These reports are ONLY MEANT to be raw comparisons of hardware costs between manufacturers and models and storage sizes. (This is done for every major phone, not just ones from Apple.)
----
If an ignorant reader thinks that this is the full cost, then sure, correct that reader's misconception.
But don't blame the hardware cost report for it. That's like blaming a road sign for only giving the miles to go, and not the actual cost of getting there
Point them instead at a company's official profit margins and bank account reports. Those are what let everyone know how much more or less they're paying for buying a particular brand.
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Ha, funny. There's a good article by John Paczkowski, at BuzzFeed telling the whole story behind the removal of the jack. Answer: It wasn't about money.
https://www.buzzfeed.com/johnpaczko...adphone-jack?utm_term=.np4jXnnGeq#.mmNQ7AAz4J
Sorry not taking up the challenge to trawl past posts, it has occurred a number of times commenters stating Apple's profit margins are tiny. Anyone who understands business even on a rudimentary level know Apple operates with huge profit margins.
See: Dell, HP, and almost every other money-losing Android handset maker.
Its not at all irrelevant, this type of information is used by investors as another factor in deciding to buy/sell apple. Some investors see this as apple no longer having the same margins as previous years while others are seeing it as apple investing more into their products being more competitive and possibly increasing sales as a result. It doesn't matter how much intel or whoever paid to make these product, it matters how much apple is spending per phone.
Read above, three up. By the way, I'm sure you don't read every post ever written. Users here have stated Apple's profit margins are tiny. Which is just false.