This hardly represents actual cost of making a device like that. It's actually ridiculous to discount the most expensive things that went into this device and that is the intellectual costs. The costs of having really good humans working on it and innovating and problem solving. The glass and chips and plastics and raw materials are the least impressive part. It's actually a good example of 18th century thinking when the raw materials really did impart a huge amount of the 'worth' of something. But these days and moving forward it's the intangibles that will add real value. It's like adding up the costs of a movie camera and sets to tell us the 'real' cost and value of a movie. Those same material costs can produce something worth far less in the marketplace.
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iPhone X Component Costs Estimated at $357.50
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I was already planning on returning my phone, but this just seals the deal. A $1,000 MARKUP? R U Kidding????? And don't give me that R & D BS. Nothing justifies this kind of gouging.
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Yeah, just look at the Galaxy S8, throw a notch on it and call it a day.
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Yeah, just look at the Galaxy S8, throw a notch on it and call it a day.
Because, you aren’t just paying Apple for hardware. You are paying them for the time planning, engineering and design teams, research and development, manufacturing, etc. If Apple sold the phones at the cost of its parts then they would likely dicscontinue the iPhone.
Labor costs are not associated with component costs. This is strictly referring to the actual individual costs for every component with in the iPhone X. Two different things.
Actually, probably not. Strangely enough nobody seems to mention or consider the cost of assembling. You know, the work all those hundreds of thousands of people do in China? I guess they must get paid something, but who knows?
At each conference Call, we can see Apple report between 30 to 40% profit margin, so, this $359 does not reflect the whole cost.
i take it you refuse to acknowledge that people working in the R&D department are not people and/or need to get paid... among other things
Assembly? It’s been mentioned. No one is really trying layout a complete audit of costs for people that don’t understand. So please take your smug attitude and point it somewhere else. Or add something substantial.
That's a good question. If Apple is screwing over its customers, you would think that customers would catch on and buy different products. If Apple could sell the iPhone X for $2000 each without affecting sales, I would support that decision 100%.
And of course iOS development is quite a few bucks.
Good one
Obviously it doesn’t factor in everything. That being said, it’s still mostly apples to apples when looking at reports from this time around the iPhone 6 as they didn’t factor that in either. But yeah, go ahead and go for the snarky responses instead.
Magic, actually with all these complainers in this thread. I would like to see even one produce a competitive hardware and software solution along with support. I see Samsung and Google have spent millions if not billions over the course of many years, however we have the armchair analysts who claim otherwise.
Shine us with your wisdom and magical hardware and software at a minimal cost, and if it meets my requirements I will buy 2. If not move along.
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Sure it's $357 if one orders 50 to 60 million. Try ordering 10 and see how much the component cost actually is.
I guess going along with that line of thinking, that is to say a Ferrari has only about $1000 in steel/aluminum, rubber, leather and plastics in it.
I guess going along with that line of thinking, that is to say a Ferrari has only about $1000 in steel/aluminum, rubber, leather and plastics in it.
I wonder why Apple decided to sell both iPhone 8 and iPhone X, given how steep the margins are.
My guess is that they couldn't produce enough units with face id or the larger screen, so they decided to do both, but charge more for the iPhone X so people would have incentive to buy the cheaper.
Next version of iPhone will most likely look like iPhone X, but cost like iPhone 8.
My guess is that they couldn't produce enough units with face id or the larger screen, so they decided to do both, but charge more for the iPhone X so people would have incentive to buy the cheaper.
Next version of iPhone will most likely look like iPhone X, but cost like iPhone 8.
Exactly - the NRE (Non Recoverable Engineering) costs appear to have been neglected in the analysis of costs.
What's a "Neural Engine" chip or whatever cost? These dudes know that?
I guess, you can massage the numbers until you get a 40% margin and that will tell you what the NRE's probably are.
Apple isn't raping the customers - they get a good margin, and they deserve it, but they don't abuse the customers by over charging I don't think.
What does that have to do with anything?
The person said Tim Cook said, to investors, that the BoM was wrong. If he’s lying to investors, that’s illegal. That has a lot to do with what you were responding to.
Apple was also on the verge of collapse in the 90’s. It’s strange how a company learns from their mistakes and with good leadership can turn the tide.
Steve Jobs had to invigorate Apple and make it relevant again. Tim Cook has to continue growth and sustain its brand. Think of it as a Tick Tock cycle. Once Tim Cook is done, there may very well be a Tick cycle, however the big question is whom?
I am just unsure as to why there are a multitude of iPhone models and generations on the market this year, it seems that Apple is either testing the waters or is having an off year. It’s natural every company will experience it, Steve Jobs had some failures (G4 Cube, iPod HiFi, etc), Tim Cook’s failures are not directly related to innovation rather to what his strengths are. Tim is not Steve and Steve was not Tim, each has their strengths that has made Apple one of the richest companies in the world. I call this a success story. Do I wish the iPhone X was cheaper, sure we all do. However remember that it is a transitional and beta product of sorts. Some customers want tried and tested technology (TouchID) and a farmiliar design, others want something new and radical.
I honestly believe that the 6S should have been dropped from the line up this year to continue the tradition of offering previous years model at a lower starting price. Tim Cook needs to streamline the iOS universe line, it goes against the simplified clear marketing model that made Apple relate to the common customer. I had a customer ask me if they should get the X or 8, and I said if it is a business expense get the X, if not stick with the 8 unless you can afford it and want to spoil yourself.
No. You pay for what you get if you want it. I’m not sure anyone is expecting you to pay any thing.