PERFECT example, but not in support of your argument. Because, apparently, way more research WAS needed. The Kinect sucked, I had one and tossed it in a drawer in my TV Cabinet. The Kinect was an utter failure. By every sense of the word “failure”. Not only killed by Microsoft as a result of that failure, but not even reborn even for the new XBox One X releasing in a day. And the Kinect had the ability to run off the processing power of a (repurposed - but real) PC /desktop computer wrapped in a console case - and it still was awful.It's basically a Microsoft Kinect miniaturised, so not much research needed.
I don't understand why they couldn't sell it for $359
$700 is probably correct. 30% profit is what most companies would love to achieve
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.
wonder how much the R&D was for the FaceID
They’re a good business so no knocking that, but damn do they make a ton of money per unit. The markup is insane.
I like how people will quote these estimates like gospel and will question the retail price. They seem to forget R&D, shipping of parts, final assembly and delivery to retail. These are all costs that need to be considered.
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
Apple didn’t spend $360,000,000 on another company, and work to integrate its technology into the 8. They also didn’t pay to integrate 3D Touch into an AMOLED screen for that device either.So, a $70 difference in cost leads to a $200 difference in MSRP between the 8+ and the X.
Seems legit.
I don't understand why they couldn't sell it for $359
This really is nonsense. These devices are not constructed from Legos. The aggregate cost of the “bricks” only accounts for the variable costs of production. The fixed costs of production (R&D, marketing costs, etc.) are substantial and also dynamic. The media really sucks when it comes to headlines -and maybe we are to blame for being so succepible to falling for clickbait. There is value in the content of this article, namely, the cost of the physical components of this device, but to suggest an equivalency between that and what it costs to truly bring one of these devices to market is an insult to the intellegnce of us all.
It's basically a Microsoft Kinect miniaturised, so not much research needed.
I understand that Apple run the business model - look at the following example:
- Apple get massive discount from manufactures for the various parts in order to make iPhone. (Huge Profit)
- You won't get much discount from UK distribution to reseller.....
- Apple wont give you much discount if you buy bulk orders for the business.
This is crazy - Apple used "secret bolthole" in Jersey to avoid taxes via Panorama paradise papers but expect us to pay even more?
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?
No just shows that you don’t bother to read anything anyone writes..
wonder how much the R&D was for the FaceID
It cost them $641 more per iPhone to develop the FaceID. So yeah that technology was lightyears ahead of its time.wonder how much the R&D was for the FaceID
Hey, the money for the gold toilets at the spaceship has to come from somewhere...you know how expensive those things are?So what about the continually rising costs of Apple care. Out of warranty replacements? Just... why?
the iPhone X has a gross margin of 64 percent, higher than the iPhone 8's gross margin of 59 percent.
Because they don’t grow from trees
Oh my gosh...a company is actually wanting to make a profit.
And how many times has Tim Cook said these component cost estimates are BS yet every rumor site still reports on them as if they’re newsworthy.