They had to raise the price, from the reviews, this is the most breakable iPhone made. More risk means higher premium I see nothing wrong with that.
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iPhone X Component Costs Estimated at $357.50
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They had to raise the price, from the reviews, this is the most breakable iPhone made. More risk means higher premium I see nothing wrong with that.
MH01
Suspended
Why punish the customer for your design choices ?
thadoggfather
macrumors P6
If this is even remotely true assuming previous models usually are around 200$ is also true this is around a 50% increase for a phone that has an uptick sticker price of roughly 42 percent (difference of $300 USD from 8 to X divided by $699 price of base 8)
Coupled with 8+ 256 being 949 and X 64 999 if you aren’t storage heavy, and that note 8 is $929 Msrp,
Suddenly the X doesn’t feel that ridiculously priced in a lot of contexts
Don’t get me wrong 999+ is a lot especially with AppleCare+ and everything else. Period.
But maybe apple maxed out their crazy pricing with grounded in something
Smart phone prices for flagships is already in the orbit
Pixel2 product line is pretty up there too (and pixel2 xl)
Coupled with 8+ 256 being 949 and X 64 999 if you aren’t storage heavy, and that note 8 is $929 Msrp,
Suddenly the X doesn’t feel that ridiculously priced in a lot of contexts
Don’t get me wrong 999+ is a lot especially with AppleCare+ and everything else. Period.
But maybe apple maxed out their crazy pricing with grounded in something
Smart phone prices for flagships is already in the orbit
Pixel2 product line is pretty up there too (and pixel2 xl)
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Because Apple wants to make as much money as possible, that is their duty to their shareholders. If Apple is being unfair, the market will reflect that and punish Apple.
If the RAM goes bad in a Mac Mini, the computer is more or less garbage as the entire logic board must be replaced. Do you really think Apples cares about their bad design choices?
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MH01
Suspended
In fact that is my biggest issue with Cook, greed and disposable computers.
bchreng
macrumors 65816
wackymacky
macrumors 68000
So where's the YouTube video of someone going to China and sourcing parts to build their own for this price.
Yup, and that is why I am not buying as many Apple products anymore.
Michael Goff
Suspended
If the numbers were right, this math would make sense.
1k$ phone:
357.50 parts
380 profits
262.5 for what? R&D? Sitting in a warehouse? Labor? All of those couldn’t add that much to a phone.
purplehaze0
macrumors regular
It’s really simple, purchase is not obligatory, if you don’t want to pay then get a cheaper alternative phone.
Unlike charity organizations, greed is what drives all companies. Even your workplace (assuming you are working).
Delgibbons
macrumors 6502a
craig1410
macrumors 65816
Is it the greed of the company or the envy of the consumer? And don’t forget that companies are owned by people who demand that financial performance.
I prefer to think companies are driven by supply & demand.
If you can supply something which consumers demand, and can do so while generating a profit then good for you!
If this is so easy then all the moaners on this thread should give it a try and donate their profits to charity or something!
I'm not sure what your background you have no clue what you are talking about, you can't just add up numbers randomly. and get to $1000. You are missing the following
- Retailers Profit of roughly 10% or 100$
- patents, this could be close to $50
- packaging
- transportation
- Then there are taxes to be paid to the government, do you think that Uncle Sam is an Apple Fan and lets Apple pay no tax?
- 120,000 employees
- dividends
- Other operating expenses, for buildings, aircraft etc.
Then there is the fact that other items at Apple have much lower margins (Like iPads, Apps, content). iPhones margins are probably higher than other products. Do you think a $330 iPad has the same margin as the iPhone X ?
Not greed at all, greed would be cutting corners that puts people at risk or lying to customers. Convincing someone that they need a $1000 smartphone, well that is genius.
stringent
macrumors 6502
Anyone forget all those 'free' services and Apps Apple give you? Their servers and datacenters? Apples iCloud services ('Free tier')? Those aren't 'free' you pay for them when you buy the device, unlike some other companies that leech off your privacy to make their money.
Michael Goff
Suspended
You think that dividends factor into the cost of an iPhone? Buildings? Aircraft? All of their employees? Even the ones making Macs and iPads and accessories?
MH01
Suspended
Yeah I got a Mac Pro on benefits ...... are you working?
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I pay £6.99 a month for iCloud storage . The free tier is all but useless once you are in the ecosystem and own more than one device . Come on 5GB free..... might as well not have it .
What other "free" services are you referring to ?
stringent
macrumors 6502
iMessage, Find iPhone, Free Apps and their development (Pages, Garageband etc), Maps ... All those require R&D, staff, servers to run which don't pay themselves. Also I could refer you here to the services Apple Offer. Most of these are free to use, but the cost of them comes from somewhere, so in my mind its built in when you buy an Apple Product.
https://www.apple.com/uk/support/systemstatus/
We get a lot for our money really when you think about it.
MH01
Suspended
You are referring to the closed Apple ecosystem now. These are not created for your benefit, they are to keep you in the ecosystem and promote it.
I'll just tackle iMessage , if apple cared about your communication needs, it would be cross platform. They want your to bring your friends / family into the ecosystem so they can take advantage of it.
You can spin that iTunes is a "free" service .... it's not , it's a gateway to a huge revenue spinner , that locks you in . More of a trap, cause when you think about leaving , you realise how much you invested in it.... I own the Apple TV 4K , a poor device really for the money ... though..... I got all that iTunes content 😉
All operating costs should be considered when operating a business. Do you think Apple would have spent 5 billion dollars on a new head office or $80 million for a business jet if their margins were 5%.
What even your point, Your above quote does not reflect any economic reality, 120,000 people do not works for free, retailers sell things for a profit, Apple has to pay tax, and that Apple has to pay certain amount of royalties.
http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/net-margin-2513
Guys stop trying to explain economics to 4th graders.
stringent
macrumors 6502
Think its called a business model? 😀 Not saying they don't rope you into an ecosystem, but part of what we pay for a phone goes towards those services as well, if you want to use them.