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That’s all part of it spread out over all of their sales and they make tons of money. So I don’t get the poor apple attitudes. They have the highrst markup in the business......by a long shot. Even if they lose market share their profits rise.

Sorry, they get no pity from me even though I use apple products. More power to them, but no pity.

They all slap down millions on stuff like that. It really amounts to very little on each product.
I didn't ask for pity for a trillion dollar tax cheat, I just elaborated on points that people in these forums seem to never consider.
 
this is nothing -- the cases for the iphones are a huge mark up. A $1-$2 accessories can sale for $9.99... ever watch Shark Tank? it's common practice to sale 3x or 4x of the cost.

Apple sells 30 cent dongles for $10-100
 
I've never seen them explicitly state the profit per unit on each iPhone. I don't buy it.
Apple averages around 20% net profit after taxes for the company as a whole.

They don’t break out profit for their various product segments, i.e. Mac, iPhone, iPad, Other (Watch, HomePod, AirPod, AppleTV, Beats, etc.) and Services.

iPhone is roughly half their sales. It could be that the other half has net profit of 30% and iPhone is 10%, for a 20% average. Or maybe iPhone is 30% and everything else is 10%, again averaging 20%.

More likely, iPhone net profit is within a few percentage points of the company average.
 
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Apple averages around 21% net profit after taxes for the company as a whole.

They don’t break out profit for their various product segments, i.e. Mac, iPhone, iPad, Other (Watch, HomePod, AirPod, AppleTV, Beats, etc.) and Services.

Yea, that makes sense. I knew they didn't break it out for the iPhone. That's the number I would be interested in seeing.
 
I love the people who just assume "$1200 phone - (cost of parts) = pure profit". Shipping, logistics, marketing, paying their engineers 6 figure salaries each, manufacturing, etc etc etc.

and record profits next Apple's Quarterly Report. Big stock options for Tim Cook.
 
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I find your reasoning funny. If they are so into R&D would you be happy wth a $2000 phone or a $3000 one?

Basic reading comprehension should give you an answer to this, but I'll oblige. Stating there's much more that goes into the cost of the phone than just the parts is the truth, but that doesn't imply I WANT to pay for a more expensive phone. Nor would I. The two are not mutually exclusive. You know who designs those parts? Employees do. Where do you think the money comes from that Apple uses to pay its employees? From selling their products. If they're selling a product exactly at face value of the parts, there's no profit to pay their employees. It's an extremely simple concept, so hopefully I've broken it down enough for you to understand.
 
Mostly because of Project Titan but who knows what else they are experimenting with. In any case, I'm not willing to fund the development of watches and cars with my iPhone's markup. That's what investors are for.

Then don't buy an iPhone? You don't get to say where the money goes. And its it's obvious you don't know how companies work.
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You’re right this is an estimate. If anyone believes it’s this cost or more they are crazy! In fact chances are it is 15-20% less then these eatimates. Anyone who thinks Apple is making any less then 70-100%+ margin on their products is insanse and naïve.

So what products are they making really small margins on?
 
Apple averages around 20% net profit after taxes for the company as a whole.

They don’t break out profit for their various product segments, i.e. Mac, iPhone, iPad, Other (Watch, HomePod, AirPod, AppleTV, Beats, etc.) and Services.

iPhone is roughly half their sales. It could be that the other half has net profit of 30% and iPhone is 10%, for a 20% average. Or maybe iPhone is 30% and everything else is 10%, again averaging 20%.

More likely, iPhone net profit is within a few percentage points of the company average.

Don’t think some posters understand the nand 512gb cost more than 256gb.
 
Permabear or permabull does not matter. What matters is that most people are gambling on the stock market, and when you gamble my dear friend, eventually you lose. Just ask people in 1987, 2000, 2008. And especially the Japanese, whos stock market still didnt recover to its highest point. Historically, very few people get to keep their gains, and most of those very few are insiders. But personally i dont care, everyone is free to do as they please. What does piss me off is that we the people had to bail out the banks in 2008, who basically doubled down on bad behavior which will cause the same results. But as i said, this time is different right? :)
What are you talking about, honestly?

You literally can NOT lose in the stock market if you own good stocks and buy and hold them over a long period. Can't lose. Notice how the market is at ALL TIME highs? This means if you bought at ANY time and did not sell like the idiots tell you to in times of panic, you'd be richer.

Do you think Warren Buffett is worth $80B because you eventually lose in the stock market?

Stocks have outperformed EVERY asset in existence. Bonds, Gold, real estate, doesn't matter. Stocks over the long term will make you wealthy. The average annual return of the S&P 500 for the last 90 years is ~10%. If you invested $10,000 in 1942, you'd have $51,000,000 today.

If you bought Gold, you'd have $400,000.

https://www.cnbc.com/2018/05/07/war...-in-1942-would-be-worth-51-million-today.html

1987, 2000, and 2008 were GREAT buying opportunities. The only way you lost is if you sold. I made tons of money buying stocks I still hold in 2008. I would love for stocks to go down again so I can buy even more shares.

If you're worried about bankruptcy, buy an S&P 500 index. You'll do great and it can't go to $0. When it goes down, buy more. Never fails.
 
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Exactly. But, you will be ridiculed in this thread if you suggest Apple is making a profit.
On the $1,250 256GB XS Max, Apple would net about $250 in after tax profit if they make their company-wide average (approx 20%). That means that in addition to the component costs the article puts at about $450, there’s another $550 of additional costs that also need to be covered before Apple makes any profit at all.

Those who insist Apple makes an $800 profit on that iPhone need to be educated, not ridiculed :)
 
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Exactly. But, you will be ridiculed in this thread if you suggest Apple is making a profit.

I think people just want to point out that component costs aren’t all that goes into a products profit margin, which I understand. Apple products are worth their costs in my eyes. I’m happy to pay a certain cost of I feel the value is there.
 
Don’t think some posters understand the nand 512gb cost more than 256gb.
If we use the prices from TechInsight’s BOM cost estimate in the article, the 512GB model could be about $64 more in component costs than the 256GB model. That $64 cost increase translates into a $200 price increase.
 
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the profit isnt as large as i thought it was nevertheless roughly 180 percent profit is pretty good.

Question. do you all think apple would sell twice as many at 899.99 vs selling them at 1249?
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I've never seen them explicitly state the profit per unit on each iPhone. I don't buy it.
think about returns, swap outs etc.. The cost of maintaining a profit can add up very quickly.
 
Do you think the r and d is $1000 per device for the max 512g?! You need to take into consideration they sell up to hundreds of millions of devices, in theory that lowers the percentage of costs per unit by quite a bit. The more they sell, the less of r & d per unit. As I said, they are not selling 1 or 2 millions, they are selling hundreds of millions every 1.5 years or so i believe. instead of going down, prices have gone up! And they even have their apologists to defend them!

And I never complain about prices, if it's something I like i'll buy it, but it's no secret Apple charges a pretty penny for their products compared to the competition.

Prices continue to go up, so does what your getting for your money. You get a lot more per dollar spent on a Xs Max than you got per dollar on the original iPhone. I still have one.
 
the profit isnt as large as i thought it was nevertheless roughly 180 percent profit is pretty good.

Question. do you all think apple would sell twice as many at 899.99 vs selling them at 1249?
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think about returns, swap outs etc.. The cost of maintaining a profit can add up very quickly.

Sure. What does that have do with what I posted? Do you have something that says they make 20% profit per iPhone?
 
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the profit isnt as large as i thought it was nevertheless roughly 180 percent profit is pretty good.
There is no 180% profit, the $450 mentioned in the article is just the portion of the overall cost attributable to the parts. Apple makes about 20% net profit after taxes, company-wide. So realize there’s another $550 per unit to cover costs other than components.

Question. do you all think apple would sell twice as many at 899.99 vs selling them at 1249?
Considering that Apple’s cost might be $1,000, they could be going from making a $250 net profit per unit to losing $100 on each 256GB XS Max sold—and trying to make it up on volume lol.
 
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...Apple typically adopts such technologies only after others implement it successfully for years, huge cost savings in R&D and testing IMO.
Great strategy though!
In my observation Apple implementation technologies when they see some innovation to it. Touch ID, Face ID, air power, neural engine used as some examples. They just don’t throw technology in for internet bragging rights.
 
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