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iPhone X Component Costs Estimated at $357.50
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I think we can all accept you make a profit, and have R&D and all that to pay for.
All good.
The bit that really annoys is when, for example the fit a $20 memory chip instead of a $5 memory chip, and charge you perhaps $150 for the difference. It's stuff like that, that grates on you.
Stock items. Like a SSD in an old iMac at ??? X the cost of the item to buy
yet they charge you $549 to replace the rear glass on your iPhone X, Apple sucks are producing repairable products now.
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How much would you like to pay to replace the rear glass on an iPhone X?
R&D, marketing, not to mention a ton of other costs that played their part in the creation of the phone.
It is laughable for some people to believe that just because a mass produced device has a cost of 300$, that that is the equivalent cost of the product for the company.
Unless, like one folk here very well put it, they think that iphones "grow from trees".
It is laughable for some people to believe that just because a mass produced device has a cost of 300$, that that is the equivalent cost of the product for the company.
Unless, like one folk here very well put it, they think that iphones "grow from trees".
I've seen a report saying Apple pays more than 100 dollars per display, it's more advanced than the ones samsung is using on their own smartphones.
And I'm pretty sure the manufacturing costs are far higher than 60 dollars. And then there is marketing and packaging and transportation costs which also go into the price.
And them we have R&D....
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Again not that insane, they have other costs, iPhones don't appear all over the world in shiny new boxes and stores.
Apple disagrees. Lets see who is telling the truth. Apple may have discussed relocation but may they want to avoid Some EU taxes and American taxes. I noticed that America charges a tax on funds coming into the US that were already taxed in the country of origin.
We are saying you dont know what youre talking about each engineer that worked on the project costs 150k+ benefits per year etc... Then they had to payout for the manufacturing process, research, return policy, stores, etc...
Id want to avoid taxes too if I was going to taxed at the full rate in Europe then again in the US. The prouct was sold in one country not two countries. Im as liberal as the next guy but that is ridiculous.
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Many times the ssds we buy don't have the same speed as apples. When you look at the same speed and brand it's not that much of a difference.
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Like if Apple was the only company who tries to avoid taxes.....
They payed 36 billion dollars last year alone.
Maybe they could cut costs by not giving all their money to their greedy execs.
Like the cost of the part is the only thing that goes into the phone. Upon repair. There are likely several things broken when a display is cracked.
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Im sorry but its hard ro argue Apple execs are themselves greedy considering what theyve built up.
Exactly. This is why I hate articles like this, because it creates mass hysteria among the public with no regard. Normal people are gonna read this and assume Apple is ripping them off of, based on this article alone. Funny how they fail to estimate the R&D of all the new aspects of the phone (display, camera, Face ID, etc), what it costs to warranty it and ship these things out across the world. Because you know, it was probably so cheap, it may as well be a rounding errrof
They don't need to use the company as their personal piggy bank though, do they? It's ugly.
Also no, it's not what they've built. They're riding off the back of what Steve Jobs built, and he didn't do this. Plus execs like Angela only recently joined the company and already milking it for all its worth. I don't think these people deserve as much recognition as you people give them. They're just keeping the boat afloat, and doing it badly. They're as vision-less as each other.
Per iPhone X? Maybe $2?
You're all shouting about R&D but considering the volumes of phones it can't be significant to the cost per unit.
It's all clickbait, and all the illiterate people think Apple overcharges a lot, they just profit, theres a difference, I don't understand how Apple captures all the profits in the industry.
Why are the other brands going? How are they making money? 79% of all profits go to Apple.
And all other brands in the world share the rest.
You summed this up so well, this article is internet fodder and is misleading, but on the other hand people love to jump the gun and not think it all through.
As of 2015, an excerpt from an article "Where Apple Products Are Born: A Rare Glimpse Inside Foxconn's Factory Gates":
"Woo acknowledges that there’s only so much that can be done to address the monotony of assembly line work — and the demand for precision by Foxconn’s customers. “I don’t want to gloss over the difficulties of manufacturing,” he said. “There is a lot of repetition.” That’s why Gou has invested in automation and robotics, with the goal of converting 40 percent to 50 percent of the assembly process to machines.
Such improvements would seemingly have the added benefit of controlling costs and enhancing Foxconn’s competitive edge.
Under the glare of international media attention and customer scrutiny, Foxconn has raised its base wage from a reported $153 a month to a starting salary of $306 for a 40-hour week — with pay increasing to $402 after a three-month probationary period. It also restricted overtime hours to no more than 60 per month."
At that time, the average factory worker made roughly half the cost of an iPhone 6s in China. No telling what the things would cost if they were manufactured in Europe or the US.
Please change the first sentence of the post "Apple's new iPhone X costs $357.50 to make" because it's blatantly wrong. That whole paragraph is so wrong it's shoddy journalism (even if the end of the post includes the modifying statements).
Start with "One analysis estimates iPhone X component costs are $357.50". Then say "Component cost estimates from companies like TechInsights look only at the price of raw components and do not take into account other iPhone manufacturing expenses like research and development, software creation, advertising, and distribution."
That's how you cover these estimates without posting something that's not true.
In any case, we know Apple's profit margin as a company is 20% (https://ycharts.com/companies/AAPL/profit_margin) so that's about the real markup on Apple's products.
Start with "One analysis estimates iPhone X component costs are $357.50". Then say "Component cost estimates from companies like TechInsights look only at the price of raw components and do not take into account other iPhone manufacturing expenses like research and development, software creation, advertising, and distribution."
That's how you cover these estimates without posting something that's not true.
In any case, we know Apple's profit margin as a company is 20% (https://ycharts.com/companies/AAPL/profit_margin) so that's about the real markup on Apple's products.
Snarky, sure... but I and other had pointed out R&D wages / taxes etc reasons... it’s annoying that people immediately post a tabloid reactive comment without bothering to read down... it’s like Entering a meeting and shouting everyone down with something someone pointed out 2 hours ago and has already been discussed... ah the internet.
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Interesting. A lot of other places mark it at 30-40% over product lifespan. perhaps that’s iPhone? Others might be a lot less profit?
Perhaps the higher figures are pre tax?
Yes, the higher figures are gross profit margin (pre tax and other expenses; https://ycharts.com/companies/AAPL/gross_profit_margin) so they are not a great % to use.
Gross profit margin is important for business purposes but trying to use it (as some people do) to argue that Apple grossly overcharges for products is not accurate. You could argue (if you think Apple should have negligible margins) that they could reduce product prices across the board by about 18% but even then that simplifies a complicated economic situation. Apple would make less money and thus have less money to work on new products or other initiatives (e.g., building renewable energy sources or new offices).
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R&D. The 8+ didn't need much as it's based on the 7+, which was based on the 6s+, which was based on the 6+. The X is a major change by comparison.
Actually, labor costs are associated with every component in the phone, starting with the mining for materials and manufacturing of the individual parts.