iPhone X Component Costs Estimated at $357.50

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Nov 6, 2017.

  1. DNichter macrumors 604


    Apr 27, 2015
    Philadelphia, PA
    I get that, the markup is still higher than every other industry. Even when you factor in everything else. I have no issue with it as you get what you pay for.
    --- Post Merged, Nov 7, 2017 ---
    You guys are nuts. I get that it's a business, that's why I said that. Cry to your mom?
  2. kdarling, Nov 7, 2017
    Last edited: Nov 7, 2017

    kdarling macrumors P6


    Jun 9, 2007
    First university coding class = 47 years ago
    Nope, you get a US credit for taxes paid to other countries. But you obviously have to first pay taxes somewhere to get any credit.

    Instead, what Apple (and others) do is try to avoid paying most taxes in any country.

    To do this, they created a sophisticated international system of shell companies that pass around supposedly valuable IP in order to claim massive tax deductions. It might have been legal to do, but it clearly intentionally circumvented the intent of tax laws.

    That's why the EU is closing some loopholes and slapping on back taxes in the billions.
  3. Chupa Chupa macrumors G5

    Chupa Chupa

    Jul 16, 2002
    If someone doesn't explain it to them they'll never learn. And then they'll end up adults with a kindergartener's understanding of economics. (I think 4th grade here is giving them too much credit. I think every astute 4th grader gets the concept of operating a lemonade stand or a bake sale).
  4. dilbert99 macrumors 68000

    Jul 23, 2012
    The rear of the phone is not a display and it is shocking that to replace that you have to replace half the phone.
  5. curtvaughan macrumors 6502a


    Dec 23, 2016
    Austin, TX
    If someone or some company tried to do such a thing, they'd be sued by Apple for patent infringement or some such. In a generic sense, other companies are already making cheaper phones for less money - they're called Android phones, and most of the people buying them aren't buying iPhones from Apple.
  6. spacemnspiff macrumors 6502a


    Feb 11, 2009
    That's a business idea for you, you could essentially take all those parts and assemble them and sell that phone in competition to iPhone for a huge profit, that's what most people in the thread are thinking. Let me know how that business idea works out for you, I might even invest in your company.

    These part costs are meaningless unless you are in the business of selling just the parts and not the whole phone with the software and services, the whole experience. The NRE costs, software development and services don't factor into any of this.
  7. curtvaughan macrumors 6502a


    Dec 23, 2016
    Austin, TX
    In a sense, the 7 and 7+ were a major departure from the 6S and 6S+ , at least for quite a few people. Apple touted the new design as being courageous; others just noticed there was no longer a phone jack. Thus far (my current iPhone is a 6S+) the newer phones without the jack aren't attractive enough for me to buy at the prices demanded. If, by the time my 6S+ is no longer functional, the newer phones can provide the sound functionality I prefer - whether with improvement of wireless headphone technology and/or sufficient improvement to the phones themselves - I'll buy one. Otherwise, I won't. That is exactly how supply and demand is supposed to work.
  8. Rum_Becker Suspended

    Sep 1, 2017
    This is the exact reason I love Articles like this, it's funny to see the reaction of all the people with who have no comprehension skills or the people wearing tin hats on the other side claiming that this BOM is just pure BS.
  9. BruceEBonus macrumors 65816


    Sep 23, 2007
    Derbyshire, England
    Whew. It's R&D costs then that added the extra $1000 PER PHONE mark up.

    That's ok then. Because Id've been quite narked otherwise had it all been attributed to marketing and profiteering and a cynical reliance on blind customer loyalty. Good.

    Isn't it?
  10. skywalkerr69 macrumors 6502a


    Jan 21, 2011
    New York
    According to Apple CEO Tim Cook, cost breakdowns are generally "much different than the reality." "I've never seen one that is anywhere close to being accurate," he said in 2015."

    Yeah because we get them even cheaper!
  11. Cloudkicker macrumors 6502


    Nov 29, 2016
    London, Canada/Los Angeles, CA
    A plastic bin/waste paper basket/mop bucket/recycling bin from Dollarama is just plastic. It can cost anywhere from $2 to $4. No idea how much the plastic beads require to melt to pour into a dyecast mould costs (say 55 to 80 cents), but once they got the mould set, there is no more R&D requirement. Just year after year cookie cutter.

    So it's not like Apple has to start from scratch from an R&D standpoint from the very basic motherboard. They coast on everything that isn't a new feature.
  12. Chupa Chupa macrumors G5

    Chupa Chupa

    Jul 16, 2002
    I'm no engineer but even I still understand that when you are building a system every new part can change the way unchanged parts react. Succeeding iPhone generations are not as cookie cutter as you suggest. Apple has to look at each new model as a new model regardless of what parts might be reused. New models may require less R&D but its certainly not de minimus. For Apple to coast it would have to literally release the same iPhone year after year. While the 6 is similar to the 7 and 7 similar to 8 they are different.
  13. Iconoclysm macrumors 68020


    May 13, 2010
    Washington, DC
    The estimate for the FaceID alone is $200+, and how many times do we have to read that this is a $130 display?
    --- Post Merged, Nov 7, 2017 ---
    Right, because these screens are available at retail...come on man.
    --- Post Merged, Nov 7, 2017 ---
    Have you noticed the motherboard in this phone? Very basic? Why do people comment on these things this way without research?
  14. Baymowe335 macrumors 68030

    Oct 6, 2017
    Why is it shocking? Does the cell phone you invented have better fixability while also having the same functionality?

    You kids have no experience with engineering tech, so you shouldn't comment on how "shocking" it is to do anything.
  15. drcre8tive macrumors newbie


    Jul 28, 2014
    New Orleans
    Considering the costs of R&D, legal fees, patents, packaging, labor, salaries, golden parachutes, marketing/advertising, & shipping it's a wonder how they make any money at all.
  16. joonyaboy macrumors 6502


    Jun 27, 2010
    You must be new to capitalism
  17. gtg465x macrumors regular


    Sep 12, 2016
    Yeah, component costs are just a small part of what it costs to make iPhones. Apple probably has 10,000 employees working on the iPhone alone, and if those employees (many of them engineers) have an average salary of $100,000, then Apple needs to use a BILLION dollars of iPhone revenue every year just to pay the employees who make iPhones possible. Not to mention the huge costs of manufacturing equipment, advertising, R&D, etc. Apple has a Gross Profit Margin of 37.91%, so on average, it costs them 62.09% of the sale price of their products just to break even. So the real cost, or break even cost for Apple, of an iPhone X is probably around $620.
  18. Rickjames74 macrumors member


    Oct 17, 2016
    Also they forget to take into account software dev, employees, stores, websites and advertising all of which are required for anyone to get an iPhone X.
  19. Bacillus, Nov 7, 2017
    Last edited: Nov 8, 2017

    Bacillus macrumors 68020


    Jun 25, 2009
    Maybe not exactly shocking, but about as disappointing as shameful how Apple spends fortunes on patenting new materials but not further developing them.
    Any 3 year old kid can explain you that glass is the most shatter-prone material that is only useful for making windows or static objects but not phones. So you must be a lunatic or commercial genius to use it that way.
    --- Post Merged, Nov 7, 2017 ---
    You seem to ignore real estate costs, with the extremely expensive buildings and constructions that suit the execs' lifestyle and all their extravaganza, the huge Apple Music subsidies, self (non-)driving car development, etc. etc. and the fact that most of the billions remain piled up - unused.
    Joe sixpack has never been asked and probably doesn't want to contribute to that - but doesn't have a clue.
  20. UK-MacAddict macrumors regular

    May 11, 2010
    I assume miniaturising the tech was the main issue but the way the tech works itself was the same with the infrared dot projection etc.

    The Xbox One Kinect was very accurate at tracking hand gestures for navigating the menus and could already recognise different users as I used to sign into my Xbox account using my face. You just stood or sat in front of the camera for a few seconds and it logged you in.
  21. Baymowe335 macrumors 68030

    Oct 6, 2017
    All phones these days have glass screens. So a glass back is somehow shameful, egregious, and purposely designed to screw customers? It looks good, enables wireless charging, and just matches what's already on the front.

    You literally have no idea what Apple is doing on patents.
  22. Michael Goff macrumors G5

    Michael Goff

    Jul 5, 2012
    The topic of discussion is how much it really costs to make an iPhone. Please try to stay on it.
  23. Morgenland macrumors 6502


    May 28, 2009
  24. farewelwilliams macrumors 68000

    Jun 18, 2014
    i tried the kinect. the latency was god awful and completely ruined the experience. i'm sure there's some R&D spent on improving the latency, especially when it's running on a battery powered device vs plugged in kinect.

    and i don't think Apple just bought Primesense and slapped FaceID on the tech and called it done. i'm guessing they needed to improve the tech a bit more to make it secure and not prone to spoofing.
    --- Post Merged, Nov 7, 2017 ---

    what? why per phone? i'm asking how much did it cost to develop the hardware design/software for FaceID. it wasn't a rhetorical question.
  25. MacsRuleOthersDrool macrumors 68000

    Sep 8, 2016
    Not only that; but the massive number of Apple-branded chips inside the iPhone are ALL completely "black boxes" on the BOM as far as "cost" goes. So, 90% of the ICs in the iPhones are NOT amenable to ordinary "Cost Analysis".

    And a 3X margin over BOM Cost is not at ALL out-of-line. Doesn't anyone ever watch Shark Tank?

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