That is not how it works. $130 is the retail retail price, Apple is sure as hell not paying that much for a screen. Apple buys those screens by millions at manufacturing cost. KGI were also the ones who said Apple will have a problem with X production and never meet the demand in this year, which is clearly false as we saw not only improvement in shipments but also 3-4 weeks order wait time.
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iPhone X Component Costs Estimated at $357.50
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That is not how it works. $130 is the retail retail price, Apple is sure as hell not paying that much for a screen. Apple buys those screens by millions at manufacturing cost. KGI were also the ones who said Apple will have a problem with X production and never meet the demand in this year, which is clearly false as we saw not only improvement in shipments but also 3-4 weeks order wait time.
Hype up the new iPhone X?? Checked
Offer no interest loan with iPhone Upgrade Program and let customers to join?? Check
Force people to enroll AppleCare when they order a new phone with iUP?? Check
Increase the pricing of AppleCare?? Profits!!
These costing are literal bear minimum.
As the articles says
Marketing/adverting
Wages - designers / Apple store / internal / helpdesk - many many others
R+D
Tooling
Taxes
Software
Are not included!
Double it at least and then you’re about right... $700 is probably correct. 30% profit is what most companies would love to achieve
And over the lifespan - the parts will get cheaper and profit increases.
I never get that EVERY year this BS post pops up without the RD estimates - they are guessing everything else so why not?
As the articles says
Marketing/adverting
Wages - designers / Apple store / internal / helpdesk - many many others
R+D
Tooling
Taxes
Software
Are not included!
Double it at least and then you’re about right... $700 is probably correct. 30% profit is what most companies would love to achieve
And over the lifespan - the parts will get cheaper and profit increases.
I never get that EVERY year this BS post pops up without the RD estimates - they are guessing everything else so why not?
at some point it is too much, but as long as people buy it despite the cost they can charge whatever they want
Does not account for R&D, support, and other OH.
pretty sure a lot of research is needed to make facial recognition as a good security option to unlock a phone.
This happens every year. It’s like saying the cost of the parts of a Ford Explorer are worth $12,000, so selling it for $45,000 is a rip-off. Of course, that excludes the billion dollar manufacturing plant, the power to run it, the tax on the land, oh, and the 100,000 employees and their benefits - and the list goes on. Page after page of costs that are in every part and sub-assembly of the car, or the phone, and the suppliers that also build those plants and hire employees to create them. Even Spaceship Earth is a real part of the cost. How do Companies like Apple, Google, Microsoft get the brightest minds to come to work for them? Not by enticing them to a workplace that projects mediocrity, poor wages and an uncertain future. Oh, and the Galaxy Note 8 is selling for a Grand as well. Sounds pretty competitively priced to me.
Is that factoring discounts for large purchase orders of said parts? Because if not, that's an even more insane margin.
We all keep forgetting miniaturization costs nothing these days.
In all fairness. It’s not illegal. It’s a problem of the system... and guess what be it conservative/republican or labour/democrats politicians and corporations tend to have interest in keeping money... they can just afford better accountants and tax lawyers than us.
Tax efficiency they call it!
Don’t be ridiculous, you’re on MacRumors. R&D doesn’t count. Neither does manufacturing costs, or distribution, or QA testing, or aftersales care. It’s just component costs and nothing else.
Component costs are so amusing when used to evaluate profit margins. The human contribution (labor) is where the real expense is. We might as well just say how much it cost in terms of raw materials like sand, oil and metal. This just in, iPhone X is composed of $15 of raw materials!
for all we know, these may be the raw, at-cost price before the parts are even sold to Apple for assembly. These "estimates" are extremely unscientific and vague. They always have been.
That is, I will make it even if I get at least 1 warranty service(replacement). I highly doubt I will be breaking my phone within two years
Even if u buy in bulk, its always cheaper, but u get the same component/products in a smaller size and it can't be much cheaper. if the quality has to be perfect. At some stage u'll loose profit.
Sure that makes sense... 3rd cost 3rd R&D / other costs 3rd profit.
The replacements wouldn’t be considered full price just the 1/3rd ‘cost’
So ~$200 to make an iPhone 6, sold for $650 made Apple about $400-$450 a few years back.
Now $350ish to make iPhone X, sells for $1,000 so makes Apple about $650.
Wow, shows how much markup Apple (or any manufacturer charging $800+) is making. Crazy
Now $350ish to make iPhone X, sells for $1,000 so makes Apple about $650.
Wow, shows how much markup Apple (or any manufacturer charging $800+) is making. Crazy
