iPhone XS Max XS Max 256Gb cost to make, $443!?

[Renho]

Almost $800 markup! They shouldn’t go off avg selling price of an iPhone, they should go off avg Net making per phone. Yes we all know sales, marketing, R&D and distribution factors in. But not $800 per.

Anybody know how much or what other costs factor in so we get a better idea of how much Apple actually pays per divice to get into someone hands?

Screen-$80.50(removed some 3D Touch components to keep cost down)
A12-$72
Camera’s-$44
Mechanicals & Housing-$58

 

[s54]

Yeah, I can't believe Apple only makes $800 on these. Goes to show you that they're worth every penny.

 

[Renho]

Yeah, I can't believe Apple only makes $800 on these. Goes to show you that they're worth every penny.

I want to know what they actually make after all the factors. No one can net more than what they pay per. That’s just un-human...lol

 

[Newtons Apple]

Good for Apple!

 

[TitsLegendary]

That’s a surprisingly high cost as far as I’m aware. We got our phones through Verizon business and they only charged us $800 for that same configuration. That doesn’t net either Apple or Verizon very much as far as margins go, at least not at that price.

 

[Nebrie]

Wait till you find out what restaurants make.

 

[predation]

But ....... R&D, marketing, operations.......


Lol

 

[Deguello]

Wait till you find out what restaurants make.

Yeah, gross markup would put Apple to shame. Not sure how it sorts out on net, though.

 

[Macalway]

Jeez, people really don't like using their brains

That article is misleading. Part costs mean nothing.

 

[noobinator]

They charge what they think people will pay, not what they spent on creating the device. This is true for ANY company that sells a product.

 

[Deguello]

Jeez, people really don't like using their brains

That article is misleading. Part costs mean nothing.

Maybe if you assume demand is inelastic.

 

[Macalway]

Maybe if you assume demand is inelastic.

Inelastic?

Def: Economics (of demand or supply) insensitive to changes in price or income.

Thank you

 

[archer75]

Is that just parts? Not labor? Shipping parts to the factory? Shipping the phones themselves? R&D? There's so much more to the cost than just parts.

 

[ericg301]

these posts are stupid. no one knows what sort of rate apple gets on buying the components at scale. and the R&D, manufacturing, marketing, software, etc all go into the total cost of the device. then apple determines the price to hit their 30% profit. i shake my head every time one of these articles are posted.

 

[Givmeabrek]

Don't forget Tim Cook's bonus...

Hate to tell you but selling price is determined by what the market will bear (what people will pay) and not by cost of materials.

 

[Smoothie]

Wait till you find out what restaurants make.

The markup on alcoholic drinks is high, but restaurants' margins on food isn't nearly as much. If the service is good, give the server a good tip. Apple's tip is built into the price of the phone.

 

[Deguello]

inelastic? So I need to use my brain for that? Thanks a lot

Well, Apple charges what it thinks the market will bear, regardless of how much the parts cost. However, the parts aren't completely irrelevant because depending on the elasticity of demand (and, obviously, the other expenses involved with the phone) Apple could theoretically compete on price and stay profitable, if it had to, because it has a pretty decent margin above the manufacturing cost.

 

[lsutigerfan1976]

You guys complaining about how much you are paying for your phone need to realize Tim Cook needs to eat also. Have you seen how skinny he is?

 

[Macalway]

Ok, i'll settle this now:

They charge too damn much

There, done

 

[mi7chy]

But ....... R&D, marketing, operations.......

Well, cocaine isn't cheap. Pure is about $26K per kilo.

 

[Renho]

They charge what they think people will pay, not what they spent on creating the device. This is true for ANY company that sells a product.

That is not in question, what they actually spend per device is. What, you think they actually net $400 per? Times 200 million
[doublepost=1537980337][/doublepost]

Is that just parts? Not labor? Shipping parts to the factory? Shipping the phones themselves? R&D? There's so much more to the cost than just parts.

Exactly, that’s why i am asking what we think the actual net per device is.

 

[JUCJ85]

Any idea what a 512GB XS Max costs to make?

 

[Renho]

these posts are stupid. no one knows what sort of rate apple gets on buying the components at scale. and the R&D, manufacturing, marketing, software, etc all go into the total cost of the device. then apple determines the price to hit their 30% profit. i shake my head every time one of these articles are posted.

If you shake ur head why even reply, just leave it be keep ur 2 cents... I am interested in knowing the actual net per device. If you say 30% then that is a good starting point. But trying to find out net per, or abouts

 

[Agent OrangeZ]

Apple is a trillion dollar company for a reason. Besides... how do you think they pay for those professional videos of them delivering the clicker to Tim Cook to show 1 time before a keynote?

 

[Weaselboy]

Moderator Note:

Please continue the discussion in the news thread:

https://forums.macrumors.com/threads/iphone-xs-max-component-costs-estimated-at-443.2143018/