Okay, since you have a bead on r and how much did Apple spend on developing the 6s? No guesses now. Because I think you underestimate how many people and how much time and how much money it takes to do all of this. I think a few billion per year; how much is an individual product it's anybody's guess. But none the less the cost of the raw material of the final product is only that due to the volume of phones appl orders at one time.
You're joking right?
You're joking right? You think that Apple can just "blink" a new device into existence and that magically they make an unwarranted amount on each device produced?
If I don't seem to know that difference you don't know how companies account for their operations.
this is now getting really silly. The $x dollar per unit now promulgated over then Internet by some company who basically can only estimate the raw material cost leaves out the remainder of the story about how much it took to actually get there.
Alright then genius, break it down for us since you seem to claim to know more than us!If I don't seem to know that difference you don't know how companies account for their operations.
That im not guessing the finances and operation of a multi-billion dollar company is a good start.
You don't have to guess. They report their expenditure quarterly if not yearly.
They don't break up down that granular. But if you think you can guesstimate that what's the run down on 6s? Seriously if you understand this a $1 part made of common sand may take $500 million to develop.
Again, you don't seem to know the difference between R&D vs manufacturing cost.
The cost of a product is the people, materials, office space, tooling costs, etc. all of these go into the cost of the product. We're having the debate because of the number that the 6s cost $xxx dollars with a material value of $yyy. Millions and millions went into the process prior to the first 6s rolling off the assembly line and Apple commits to millions of units and gets a volume discount of sorts.
You do know they have a near 50% profit margin?they capture 90% of the profits in the industry.The iPhone,IMO,costs around $300
I agree with the tolerance for stupidity. A very simple point whatever anyone thinks the manufacturing and material costs are for an iPhone, your original quote, the nexus is more expensive with thinner margins...who knows such things; not anybody except if the company releases it. To make a buck you have to factor in more than the per unit cost spread over 50 million( or however many they order) devices plus the development that went into it, of which the 10b was facetious but (almost 5b seems to be f/y 2014) there is serious cash that goes in up front that goes toward margin.
What do I care how much a company earns from their products? A product with thinner margins doesn't necessarily imply higher quality. It simply means the company in question is earning less in profits, which may not mean a better product or an improved user experience for me at the end of the day.
