Brian Miller Posted October 12, 2013 Share Posted October 12, 2013 Apple's latest and greatest phone retails for $649 off contract, but costs a lot less for the company to make. http://money.cnn.com/video/technology/2013/10/04/t-ts-apple-5s-teardown.cnnmoney/index.html?iid=V_Taboola Link to comment Share on other sites More sharing options...
dead.cell Posted October 12, 2013 Share Posted October 12, 2013 This was already posted. And once again, it's obviously missing out a lot of the additional costs outside of the materials, and I don't just mean research and development costs either as mentioned in the video. Furthermore, it's about trying to meet demand. When you sell over 9 million phones on an opening weekend, working to pump out enough phones to meet the demand, why the HELL would you lower the price? Just doesn't make sense. :sleep2: +LogicalApex, REM2000, szo and 3 others 6 Share Link to comment Share on other sites More sharing options...
User6060 Posted October 12, 2013 Share Posted October 12, 2013 if you don't like the listed price and think you could make one cheaper why don't you: 1 - go to china yourself 2 - hire a child 3 - source all the components 4 - assemble the hardware and flash the firmware on it 5 - ship yourself and your phone back home /s szo, Draconian Guppy, WAQT and 2 others 5 Share Link to comment Share on other sites More sharing options...
max0r Posted October 27, 2013 Share Posted October 27, 2013 unbeliveable.. well it is known that apple has the highest margins amongst its competitors ! Link to comment Share on other sites More sharing options...
crazzy88ss Posted October 27, 2013 Share Posted October 27, 2013 Apple's latest and greatest phone retails for $649 off contract, but costs a lot less for the company to make. http://money.cnn.com/video/technology/2013/10/04/t-ts-apple-5s-teardown.cnnmoney/index.html?iid=V_Taboola Yes, this is generally how companies make a profit and stay in business. There are different business models and strategies that can be executed to make a profit. Get over it. Link to comment Share on other sites More sharing options...
Growled Member Posted October 28, 2013 Member Share Posted October 28, 2013 Yes, Apple makes an insane amount of profits on each device they sell. Solution, don't buy it. I don't. margrave 1 Share Link to comment Share on other sites More sharing options...
StandingInAlley Posted October 28, 2013 Share Posted October 28, 2013 Apple's latest and greatest phone retails for $649 off contract, but costs a lot less for the company to make. http://money.cnn.com/video/technology/2013/10/04/t-ts-apple-5s-teardown.cnnmoney/index.html?iid=V_Taboola Pretty sure they didn't include the cost which is incurred in doing R&D and hundreds of employees working on the software side. Link to comment Share on other sites More sharing options...
Atomic Wanderer Chicken Posted October 28, 2013 Share Posted October 28, 2013 It costs Apple $1.00 for each worker per day to make the iPhone, which is probably sadly the truth javagreen 1 Share Link to comment Share on other sites More sharing options...
Lord Method Man Posted October 28, 2013 Share Posted October 28, 2013 Pretty sure they didn't include the cost which is incurred in doing R&D and hundreds of employees working on the software side. Nope. The only costs that go into a device are the cost of the individual components its built with. R&D, Software, Packaging, Labor, Shipping, Marketing, and Storefronts are all free. Link to comment Share on other sites More sharing options...
sinis Posted November 4, 2013 Share Posted November 4, 2013 only buy Used. good news is those apple fans, seems need to replace their idevice every new model announced. Link to comment Share on other sites More sharing options...
Depicus Posted November 4, 2013 Share Posted November 4, 2013 .... and how much of that price goes to pay software patent trolls ? Indeed Apple reports that they make approx 34% profit per phone so not sure why this is (incorrect) news. Next time you go into the supermarket ask yourself how much profit there is on a tin of Heinz beans (clue more than Apple). Link to comment Share on other sites More sharing options...
+Fahim S. MVC Posted November 4, 2013 MVC Share Posted November 4, 2013 News now in - product costs more than the sum of its physical parts, vendor makes profit. Controversial! Seriously - if this disgusts you so much, go buy something else. Nobody is holding a gun to your head and making you buy an iPhone. medhunter 1 Share Link to comment Share on other sites More sharing options...
Chicane-UK Veteran Posted November 4, 2013 Veteran Share Posted November 4, 2013 only buy Used. good news is those apple fans, seems need to replace their idevice every new model announced. Yeah - but the beauty is that the products hold their value well so it means for not a significant outlay, you can upgrade every year or every other year. Win win. Link to comment Share on other sites More sharing options...
Growled Member Posted November 4, 2013 Member Share Posted November 4, 2013 ^ That is true. iPhones do hold their value really well. Link to comment Share on other sites More sharing options...
McCordRm Posted December 1, 2013 Share Posted December 1, 2013 Folks who have a problem with business do not understand business. Dick Montage, Lord Method Man and Coagulated 3 Share Link to comment Share on other sites More sharing options...
me.me.me Posted December 1, 2013 Share Posted December 1, 2013 FFS its already posted, and as u know, go use ur baby toy phone or whatherver crackhead phone do u use No one cares of WHAT u think or not about their price range Link to comment Share on other sites More sharing options...
Coagulated Posted December 1, 2013 Share Posted December 1, 2013 Folks who have a problem with business do not understand business. This. I don't paticularly like Apple, but every company is trying to sell their product for the highest possible profit. If it was acceptable to sell a loaf of bread at ?20, supermarkets would do it in a flash. Link to comment Share on other sites More sharing options...
game_over Posted December 1, 2013 Share Posted December 1, 2013 Aww boo hoo! If you are not happy with the price don't buy it, simple as that. Companies want the highest margin on a product, if people are willing to pay it then good for them. Most people can't even afford an iPhone, they get it on contract so the retail cost is irrelevant for some people. The costs are hidden in the contract but you're getting minutes/texts and data for the price so you barely feel the cost of an iPhone hitting your pockets at all. Link to comment Share on other sites More sharing options...
Growled Member Posted December 2, 2013 Member Share Posted December 2, 2013 I don't paticularly like Apple, but every company is trying to sell their product for the highest possible profit. If it was acceptable to sell a loaf of bread at ?20, supermarkets would do it in a flash. It's true that most companies charge all they think their market will accept. It just amazes me that Apple makes these high profit margins year after year after year. I am not an Apple user and I just don't understand why people buy their products so faithfully. Link to comment Share on other sites More sharing options...
Draconian Guppy Posted December 2, 2013 Share Posted December 2, 2013 if you don't like the listed price and think you could make one cheaper why don't you: 1 - go to china yourself 2 - hire a child 3 - source all the components 4 - assemble the hardware and flash the firmware on it 5 - ship yourself and your phone back home /s 1. Not only China 2. Preferably underage lol :P Link to comment Share on other sites More sharing options...
Coagulated Posted December 2, 2013 Share Posted December 2, 2013 It's true that most companies charge all they think their market will accept. It just amazes me that Apple makes these high profit margins year after year after year. I am not an Apple user and I just don't understand why people buy their products so faithfully. I'd say the top three reasons are: Style / Aesthetics Trend. Ease of use. I'd say it's also got a lot to do with the early dominance of iPhones in the Smartphone market, iPods dominating the MP3 Player market and iPads dominating the tablet market. I know a lot of people that refer to smartphones as iPhones / MP3 Players as iPods and tablets as iPads, regardless of the actual brand they're referring to. It's just like people in the UK referring to a Vacuum Cleaner as a 'Hoover'. I do it all the time, but I have never even seen a Hoover in person before, never mind owned one. You can say what you like about Apple, but they've done a brilliant job at creating a solid brand. They've practically reached the pinnacle of brand dominance, I think this showcases it perfectly: http://news.cnet.com/8301-17852_3-20064577-71.html In that case, they've only tested one person, but I watched a documentary on it around a year ago where they had a lot more test subjects and the results were the same. People crazy for Apple had crazy brain activity patterns when shown Apple products - much the same as a devout Christian being shown religious imagery. Link to comment Share on other sites More sharing options...
Kriz Posted December 2, 2013 Share Posted December 2, 2013 Like majority of purchases; Hardware and raw materials for making item - 20% Company name - 80% Link to comment Share on other sites More sharing options...
+virtorio MVC Posted December 2, 2013 MVC Share Posted December 2, 2013 Next thing you'll be telling me it doesn't cost $199 for Microsoft to master a Windows 8 Pro disc and put it in a plastic case. szo and Denis W. 2 Share Link to comment Share on other sites More sharing options...
NeoandGeo Posted December 2, 2013 Share Posted December 2, 2013 We all know Apple and other cell phone manufacturers rape us on price. It is the only way for the cell phone companies to stay relevant and not become a dumb pipe. Put together a $200 device and sell for close to $1,000 simply because it has a cell phone radio that costs pennies to produce. The same device without phone capabilities always comes in a more reasonable price that is fair to the consumer and still generates a ton of profit for said manufacturer. Link to comment Share on other sites More sharing options...
LimeMaster Posted December 2, 2013 Share Posted December 2, 2013 That's quite a big price difference. Now I know why Apple is so successful. :s Link to comment Share on other sites More sharing options...
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