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$649 iPhone 5s Costs Apple $199 To Make

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Again, these articles always ignore that the cost of production is not the only thing that affect a product's cost. You have to consider all the iphone staff (including assembly line workers) payment, publicity, retailer contracts, carrier contracts with the company, etc.

Those would have been paid whether or not the iPhone5s existed, so I don't know that those should be a factor.

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Not really a rip off if people are willing to pay for it.. 

 

 

 

It's still a ripoff to me, even if everyone does it. It's just being greedy.

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It's still a ripoff to me, even if everyone does it. It's just being greedy.

Fair Enough :D

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Cell phones have always been over priced (way before Apple entered the market). Their price are inflated so carriers can offer subsidies to bring them down to a reasonable price AND lock the poor customer into a barbaric contract.

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It's still a ripoff to me, even if everyone does it. It's just being greedy.

 

You also have to bear in mind the cost of design, prototyping, testing, marketing. Or the cost of iOS, iTunes, etc, etc.

 

The iPhone profits have to pay for Apple's R&D team for pretty much the year beforehand too - they're always working on unreleased projects - their wages have to come from somewhere :p.

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You also have to bear in mind the cost of design, prototyping, testing, marketing. Or the cost of iOS, iTunes, etc, etc.

 

The iPhone profits have to pay for Apple's R&D team for pretty much the year beforehand too - they're always working on unreleased projects - their wages have to come from somewhere :p.

 

I realize that and yet Apple still makes billions of dollars profits after all of that.

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Those would have been paid whether or not the iPhone5s existed, so I don't know that those should be a factor.

 

Are you sure? If the iPhone 5s didnt exist then there would not be researching for it, nor production, nor marketing for it, nor contracts. So how do you figure they would exist? How can expenses for an inexistent product happen?

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First reply is a business reaming apologist. That's original.

 

How do you figure I am an apologist?

 

If you research my post you'll know I am positioned near marxism. However the OP asked a very specific question that needed a very specific answer. There's no space for my personal beliefs in here.

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Are you sure? If the iPhone 5s didnt exist then there would not be researching for it, nor production, nor marketing for it, nor contracts. So how do you figure they would exist? How can expenses for an inexistent product happen?

Those expenses are budgeted every year.  The company had already allotted those resources, whether the phone was created or not. 

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Those expenses are budgeted every year.  The company had already allotted those resources, whether the phone was created or not. 

 

Yes, expenses are budgeted annually just as there is an annual plan to project the budget. Are you suggesting that since expenses are budgeted then they should not cover those expenses with their products? Honestly I'm not following you, expenses are expenses and need to be covered.

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Yes, expenses are budgeted annually just as there is an annual plan to project the budget.

That is why you cannot tie them into the phone itself.  That applies to every device they sell not just the phone.

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That is why you cannot tie them into the phone itself.  That applies to every device they sell.

 

You are only speculating how much of their expenses are being tied to the phone.

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You are only speculating how much of their expenses are being tied to the phone.

So are you.

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Actually it costs Apple $199 in parts, $1.00 in labor :laugh:

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So are you.

 

Then you're only arguing for the sake of arguing? What I said is simple: Expenses should be covered and a company should generate a profit, expenses are done as part of the company's operation, the operation's end is product manufacturing. Then, logically, the product should cover those expenses. It does not matter if those are budgeted, they are budgeted in order to generate a product.

 

If you disagree with what they charge then ok, I defend your right to disagree. Luckily you dont have to buy any of their products.

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To be fair, neither of those companies are selling 9 million of anything over a weekend.  That being said Apple is just selling them for what people will buy them for and I can't really fault them for that.  If you've got a problem with it, there are plenty of cheaper (and arguably better) options out there.  If you want one that bad, suck it up and get one.

LOL! No, they only need to sell a couple thousands to make money! :p

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So does Apple willingly lose money on each iPod that is sold with identical hardware, minus a cell radio that costs pennies on the dollar? Don't be so naive, you are continuing to look silly and are probably a shill for this BS that gets passed on to consumers so they don't know any better.

 

And again you ignore all the patents they have to pay in regards to mobile phone technology. There is a reason why there isn't the same sort of massive price difference between the iPad 3G/Wifi and the plain Wifi version.

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List the patents they have to pay for a cell radio that costs pennies to produce. There is absolutely no reason why the same tech should be double the price when it has the exact same hardware but has phone capabilities. Stop apologizing for cell phone manufacturers reaming the general public. Unless you like taking it and smiling while they reach around and give you a good honk. Because of naive folks like you, they know they can keep up the act. Time to wake up and stop being ignorant to everything.

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One of the reasons I disliked selling these devices when managing a store, was that the company making the sale, made pretty much zero money on the device at all. The telco itself made almost no money either. Every cent goes to Apple

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Cell phone materials are cheaper than the retail cost of a highly engineered product?  GTFO!  I didn't think that was even possible.  I'll just buy those parts direct and make my own iPhone, y0. /s

 

Seriously?

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Sweat shop kids get $199 ... ? :p

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Chinese made 2 trillion (!!!) bucks by selling electronics and other stuff to Western companies for a couple of bucks. Where all these money we pay for phones and overpriced clothes go to? Where the hell they save their tens of trillion dollars?

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