iPhone XS Max Component Costs Estimated at $453 [Updated]

[HarryWild]

Wonder how much per unit is the assembly, R&D and marketing expense. Usually, the marketing is a huge expense too!

 

[Ramchi]

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.

Touch ID, fingerprints have been there many years before, same with facial recognition and features(XBOX), neural engine - yes they were probably first in the photography (& faceid) .... apparently they have good security implementation with secured eclave..never used or experienced AirPower in my region, not sure what it is.

 

[gnasher729]

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.

There's not just no profit, there is no money for the employees at Foxconn to put the parts together and build the phone, no money to test it, no money to ship it to your country, no money to deliver it to the store, no store because there is no money to pay the rent, no employees because there is no money for them, so the store is locked, and the phones wouldn't be on the shelves, and so on and so on and so on.

The next number after BOM = Bill of materials is "cost of sale". That's the total cost that Apple has because you decided to buy a phone. That includes most of the bits that I mentioned. It does _not_ include cost that Apple has whether you buy the phone or not, so development, store rent, lots of other things are not counted. So if they charged "cost of sale" they would still go bankrupt very quickly.
[doublepost=1538037327][/doublepost]

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.

Go to a restaurant. Look at the wine menu, and look at the price of a cheap bottle of wine and an expensive bottle of wine. Then find out what you would pay for these bottles in a store.

A threefold increase is quite normal. That's what every business selling goods does. Seriously. Go to your supermarket, look at the price of eggs, then check what a farmer gets.

 

[hans1972]

Gotta love that markup. Wish I could get into a business like that.

Most people who are employees are in that kind of business.

The cost most employees have which is related directly to working, is usually small compared to the salary they bring in.

 

[FFR]

Touch ID, fingerprints have been there many years before, same with facial recognition and features(XBOX), neural engine - yes they were probably first in the photography (& faceid) .... apparently they have good security implementation with secured eclave..never used or experienced AirPower in my region, not sure what it is.

We also had monochrome displays, but that is very different than the oled and lcd displays we have now.

Can you show an example of capacitive finger print sensor on any phone before the iPhone 5s?

I looked and their wasn’t.
Motorola had an optical fingerprint sensor that you had to swipe but it never worked and was considered “Novel feature”, derided by it users and abondoned entirely by motorola shortly there after. .

After the 5s, everyone in the industry adopted the capacitive fingerprint sensor. which today is the standard, well until Face ID.

3d facial biometrics
No other company as far as I am aware has done 3d facial biometrics. 2d yes, but again that isn’t very secure compared to 3d.

No idea why Xbox is brought in to a discussion about phones?

Don’t believe any other manufacturer offers a Secure Enclave, either.

 

[MacBH928]

Tim Cook should use your business acumen. Set up the pricing by pulling numbers out of a head.

$300 per iphone is a huge margin for a ubiquitous product. To put things into perspective, in 2007 the whole iphone costs $500.

 

[FFR]

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.

So do we know what nand apple are using in the 512, vs the 256, and 64gb; is it slc,tlc,or mlc?

Because that plays a factor as well.

 

[FFR]

$300 per iphone is a huge margin for a ubiquitous product. To put things into perspective, in 2007 the whole iphone costs $500.

Well 300 is a huge margin for a 500 dollars phone, I think I bought mine for 600. But not so much for a 1450 dollar phone.

Secondly I’m not so sure the report is accurate.

 

[Substance90]

What investors?

You, me and everyone else buying Apple stocks.

 

[DNichter]

my quotation of your post was meant for dialogue purely. lighten up -_-

All good, was just lost.

 

[0947347]

Sorry but you both are wrong. Some of those costs can be included. Most can not.Apple still at end of day makes HUGE HUGGGGGGGGGGGGGGGGGEEEEEEEEEEEEEEEEEEEEEEEEE profits and when they now charge as much for an iPhone as they do a MacBook it is taking the smeg a lot.

You two got it absolutely right, all the staff are volunteers, so Apple is filling their pockets with money. Apple gets everything for free, shipping, building solar panels, running servers, ...
All free. 100$ bills poking out of Tim Cooks pockets.

And yes, I am being sarcastic. Have you ever run a company? I do not say Apple gadgets are cheap by any mean, but you don’t seem to see anything beyond a price tag.

Project much? Where have i stated "paying only for hardware"? When i bought my 7+, i made a conscious decision to purchase a product to suite my needs - even in 2016 it was overpriced, but I despise google and will never go with an Android phone, which basically mandates handing all your personal data to Google. Now, Apple is only slightly better in this regard, and the sad state of things is that there is no other competition out there - you are limited to IOS or Android (too bad WinPhone failed, but its entirely MS fault for not listening to their customers). Either way i paid for it upfront, full price (850+tax for the 128GB model - wanted a Qualcomm modem unit instead of intel on Tmobile).

You say free software updates - the only thing free my friend is cheese in a mousetrap, and "free" IOS12 performance improvements was forced by the IOS11 "forced obsolescence" that probably pissed off more people than even Apple expected to (along with Battery fiasco). Either way i knew that paying the premium price, it would be fair to assume that the phone will last at least 3-4 years which remains to be seen (i am mostly talking about degradation of non-replaceble battery here as i usually keep the original IOS shipped with the device, but IOS12 is a game changer with addressing "planned obsolescence" for the first time, and for this i give Apple credit, although to be fair i am convinced they didn't do it out of kindness of their heart but it was forced on them by IOS11 crap performance and complaints (bought my wife an 8 last year, upgrading from a 4s and IOS11 was always sluggish from the start - I skipped 11 entirely on my 7+).

All that said, the whole 64 vs 128 debate which i personally was arguing is a perfect proof of Apple douche tactics. Yes, they are free to do as they please, but its a douche move, and eventually it will bite them in that special place.

 

[I7guy]

Touch ID, fingerprints have been there many years before, same with facial recognition and features(XBOX), neural engine - yes they were probably first in the photography (& faceid) .... apparently they have good security implementation with secured eclave..never used or experienced AirPower in my region, not sure what it is.

When were fingerprint readers or facial recognition used for financial transactions of sorts prior to Apple implementing?

 

[FFR]

When were fingerprint readers or facial recognition used for financial transactions of sorts prior to Apple implementing?

I think he is just being argumentative, some posters don’t want to give credit where credit is due, especially if it’s apple that did the innovating.

 

[Steve121178]

Vote with your wallets people. If you go out and buy one on day one Apple will continue raising the prices.
The people here who attempt to justify Apple price increases are funny nevertheless. Yes Apple can charge whatever the market will bare (at least as long as there is 0% financing subsidy such as common in US), luckily for me though, my 7+ works like a charm (previous one was a 3GS) and i intend to keep it until it falls apart

Life is too short. I just go out and buy whatever I feel like. I don't need to make a point or justify my purchase to anyone but myself.

 

[FFR]

Vote with your wallets people. If you go out and buy one on day one Apple will continue raising the prices.
The people here who attempt to justify Apple price increases are funny nevertheless. Yes Apple can charge whatever the market will bare (at least as long as there is 0% financing subsidy such as common in US), luckily for me though, my 7+ works like a charm (previous one was a 3GS) and i intend to keep it until it falls apart

But I did vote with my wallet.
I got two

 

[PickUrPoison]

Go to a restaurant. Look at the wine menu, and look at the price of a cheap bottle of wine and an expensive bottle of wine. Then find out what you would pay for these bottles in a store.

A threefold increase is quite normal. That's what every business selling goods does. Seriously. Go to your supermarket, look at the price of eggs, then check what a farmer gets.

You’ve confused me for somebody who doesn’t understand BOM cost ($450), other costs ($550) and profit ($250) on the 256GB XS Max. (Calculated based on company-wide margins, not iPhone specifically.)

OP said he didn’t “think some posters understand the nand 512gb cost more than 256gb”. Per the TechInsights pricing, the NAND costs could be estimated at about $64. That results in a $200 price increase, because Apple understands you can’t price upgrades at BOM cost.

 

[FFR]

You’ve confused me for somebody who doesn’t understand BOM cost ($450), other costs ($550) and profit ($250) on the 256GB XS Max. (Calculated based on company-wide margins, not iPhone specifically.)

OP said he didn’t “think some posters understand the nand 512gb cost more than 256gb”. Per the TechInsights pricing, the NAND costs could be estimated at about $64. That results in a $200 price increase, because Apple understands you can’t price upgrades at BOM cost.

I did. You can’t estimate bod, if you don’t know what type of nand the iPhone is using.

Does anyone know?

Slc, mlc, or tlc?

 

[PickUrPoison]

I did. You can’t estimate bod, if you don’t know what type of nand the iPhone is using.

Does anyone know?

Slc, mlc, or tlc?

TechInsights did the tear down and assigned the price, it’s probably more accurate than their guesses for the display or the A12 lol.

$64 is their estimate for the 256GB model, but if Apple is using higher density chips their cost for the 512GB might be even higher than 2x the 256GB NAND cost. Who knows, it might be costing them an extra $100.

Whatever the underlying component cost may be, Apple charges $200 for the 256–>512GB upgrade. Per GB, it’s slightly cheaper than the 64–>256 upgrade. Customers can decide for themselves whether any of the storage upgrades are “worth it”.

 

[FFR]

TechInsights did the tear down and assigned the price, it’s probably more accurate than their guesses for the display or the A12 lol.

$64 is their estimate for the 256GB model, but if Apple is using higher density chips their cost for the 512GB might be even higher than 2x the 256GB NAND cost. Who knows, it might be costing them an extra $100.

Whatever the underlying component cost may be, Apple charges $200 for the 256–>512GB upgrade. Per GB, it’s slightly cheaper than the 64–>256 upgrade. Customers can decide for themselves whether any of the storage upgrades are “worth it”.

Don’t know the veracity of those reports. Only reason I’m asking is because in the past apple has been known to use different nand for different storage tiers.

It’s not an apple to apple comparison for price between the different tiers of different nand is used.


https://news.softpedia.com/news/iPh...ferent-But-Not-Faulty-Makers-Say-464360.shtml

 

[mebehere]

Apple only has one internal employee. It’s the blue singing alien from The Fifth Element. Like the stones, they pull the iPhones out of her. So they’re way overpriced. However, her Animoji have saved earth. So there’s that.

 

[alphaod]

Apple only has one internal employee. It’s the blue singing alien from The Fifth Element. Like the stones, they pull the iPhones out of her. So they’re way overpriced. However, her Animoji have saved earth. So there’s that.

So that's where that pinkish hue from the gold XS comes from... make sense. Got a little blood mixed in there.

 

[Baymowe335]

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?
[doublepost=1538010973][/doublepost]
think about returns, swap outs etc.. The cost of maintaining a profit can add up very quickly.

Apple makes 20% profit as a company. If iPhones made 180% profit, I'd be retired and probably would own my own island.
[doublepost=1538248122][/doublepost]

Sorry but you both are wrong. Some of those costs can be included. Most can not.Apple still at end of day makes HUGE HUGGGGGGGGGGGGGGGGGEEEEEEEEEEEEEEEEEEEEEEEEE profits and when they now charge as much for an iPhone as they do a MacBook it is taking the smeg a lot.

No, you're wrong. Apple makes 20% profit as a company, unless that's your definiton of "HUGGGGGGGGGGGGGGGGGEEEEEEEEEEEEEEEEEEEEEEEEE" profits.

Apple sells a lot of iPhones, so the total dollars in profit are a lot, but 20% is not insane...Or even among the most profitable companies on a per dollar basis.
[doublepost=1538248186][/doublepost]

Sorry but it is. Apple did not get over $250 billion cash reserves by making hardly any profit at all. They make huge vast profit margins for a reason.
[doublepost=1537914704][/doublepost]

Try more like 40%...which is vastly spectacular. After all they did not make over $250 billion by making a piddling 20%

Apple has Gross Margins of 38%...this is not profit. Not even close. I wish.

 

[FFR]

Apple makes 20% profit as a company. If iPhones made 180% profit, I'd be retired and probably would own my own island.
[doublepost=1538248122][/doublepost]
No, you're wrong. Apple makes 20% profit as a company, unless that's your definiton of "HUGGGGGGGGGGGGGGGGGEEEEEEEEEEEEEEEEEEEEEEEEE" profits.

Apple sells a lot of iPhones, so the total dollars in profit are a lot, but 20% is not insane...Or even among the most profitable companies on a per dollar basis.
[doublepost=1538248186][/doublepost]
Apple has Gross Margins of 38%...this is not profit. Not even close. I wish.

It’s like beating a dead horse.

They don’t understand the financials but choose to rage against apple anyway.

It’s perplexing to say the least especially when the same posters elect to purchase another apple device.