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iPhone X Component Costs Estimated at $357.50
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If you have proof that Apple actually has a margin on a phone over 100%? Let the FTC know, they’ve been lying to shareholders.
All I have to say is that anyone who would like to go build their own iPhone X, can now do it.... if you're too lazy to go buy all the parts and assemble yourself, I don't think you have any business complaining about cost. 
Then there is the obvious R&D, etc that is never considered...
Then there is the obvious R&D, etc that is never considered...If you’re on this thread crying about apples profit margin per unit. Chances are you failed economics at every level.
Tax strategies like the ones used by Apple - as well as Amazon, Google, Starbucks and others - cost governments around the world as much as billions a year in lost revenue.
I sincerely hope you're being sarcastic.
Don’t forget about labour, delivery, shipping, advertising, payroll (Apple Inc.), travel, royalties, store promotion and training, warranty, telephone support, recycling, legal, etc. All these conveniences cost money, I suspect once factored, Apple is taking away an approximate 30-45% profit per device.
Remember that Apple provides many demo/test devices to reviewers, Apple Stores, these cannot be sold as new, it may get recycled for parts and this all adds to the cost of the device.
Raw material cost is only 1/3 the picture and its an estimate as Apple may get it for less if not slightly more depending on contractual agreements and conditions. That being said, this is approximately 1/3 the price of the base iPhone X.
If you are not willing to work for cheap or free, don’t expect Apple engineers, developers, factory engineers, developers, etc to work for cheap or free. This is how companies promote and contribute to the local communities, even if Corps hide most in tax haven nations, the employees still expend some of they income in the communities. Tax haven loopholes is a governmental tax related issue, if you don’t like it complain to your government representatives.
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And not even the known prices, but estimated prices of materials. Guesses.
Possibly, some companies are structured or operate differently. I prefer not to assume.
Apple's new iPhone X costs $357.50 to make,…
This just really pisses me off endlessly. You state in your title that the PARTS cost X, then you state in the next sentence that it costs X to make the new iPhone. So according to this logic it costs you a few pence in electricity to create your articles, right? Why should you be paid a salary! Ripp-off!!!
So, e.g. a Lacoste polo-shirt only costs the amount of a few hundred grams of cotton to produce right?
This is beyond retarded. Here is from the top of my hat what it take to make an iPhone:
- R&D (tons of cost here)
- Development of special tools to make the phone and some specially developed parts that you can't buy anywhere else
- Sourcing the parts (you don't just get them a fixed cost everywhere in the world you need to make deals with vendors around the globe to make sure you have sufficient quantity of the materials and parts in time for the launch in the proper quality)
- Training of the assembly personnel
- Assembly of the phone
- Quality assurance testing
- Shipping costs from the factories
- Marketing & PR costs
- Packaging
- Store staff & genius bar staff training for the phone (how to fix it, how to sell it)
Some of this seems trivial but don't forget we're talking a global enterprise everywhere in the world launching it more or less at the same time. Millions of packages thousands of people to train.
Who wrote this article, Samsung or the communist party?
Nonsense.
Nonsense.
I guess you also don't understand why programmers should be paid more than the electricity they use, right? It's all about the material cost, nothing else matters.
Possibly, some companies are structured or operate differently. I prefer not to assume.
True. But theres a general breakdown into what actually goes into R&D. And you obviously get it. I just wanted to point out that I too, get it.
It’s really simple. Economics 101 folks: Ultimately. A product is worth what people are willing to pay for it. If that amount is less than what it costs to produce, it fails. If it sells out for for any more than that total value, or even twice its total production value, then that is capitalism (and the business goal). It would be a foolish business that decides to sell it for less than the market will bare because they don’t want to offend a bunch of forum members. And anyone of us on here, if we could not produce enough of anything we chose to sell, to meet overwhelming demand, we would (likely) increase the price point as well. I hope you wouldn’t teach a 7 year-old to sell a glass of lemonade on the street corner at cost of production either. Apple, like every other successful business, is trying to maximize profit margin. And they have a fiduciary obligation to do that. Get over it.
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What does this have to do with my reply IN THE CONTEXT of the post to which I replied to?
Article looks like it was written by someone at the Whitehouse
Some people believe just because Apple markets its devices as “magic/al” that to create a device it takes more than a snap of the fingers or a twitch of the nose.
It seems that these parts cost articles, only tend to infuriate the informed as misleading and infuriate the ill-informed who don’t know any better. Yes, Yes, Apple is ripping you off. A company has to stay profitable in order to survive, or have we forgotten the Apple of the early to mid 90’s. Apple does not want to repeat that history, though sometimes it feels that their flirt with it with so many device options available at a single time in history.
lol a few minutes of "research" and you would understand that Apple bought the company who was involved in the kinect's development with microsoft.
Cry to your mom...this is the reality of business. Apple makes great margins, but so do a lot of companies...who sell, well nothing. At least nothing tangible.
Go take a look a margins for Microsoft, Facebook, Google, Visa, and Verizon.
Also, these types of analyses are not only wrong, but obviously aren’t a good measure of profitability. You’d fall out of your chair if you knew the component cost of your favorite car. A lot more goes into it, obviously.
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Great analysis. The other factors like R&D are exactly the same. Did you go to an Ivy League?
If it was that easy and simple, this would have been released years ago. Miniaturizing any technology takes a lot of work and planning, many people take it for granted because we have come a long way quite fast.
If I see this level of engineering in competitors devices in 2018, I will take your word that it does not take a lot of research. If we see half-baked version in 2018 and not a complete solution until 2 years from now as others has mentioned, then you are sadly mistaken.
Maybe the wrong forum to post, however does anyone have an idea as to why the Taptic Engine is not placed in the middle of the iPhone X, as the battery is split and there is no home button for the actual response. Why not place it in the middle of the device and the vibrations are equally felt, it may be able to reduce it down and save additional power or shrink the engine down and make the device lighter or add additional battery to the device. Thoughts?
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