iPhone 4s Cost to be produced

Soldato
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Was checking my daily news site, thought this may be of interest to users within this forum. Definitely interested me being an owner of many Mac hardware really does show how much profit they really are making on us.

The other week I took an iPhone out on the network 3 signal was perfect everywhere apart from my home address, 7 days later I returned to the Apple store with a fully functioning perfect condition just to change over to o2 I was given a brand new iPhone I believe they strip them out etc the Apple guy claimed again this show's how much profit they make to be able to do this.

Here is the link, deffo worth a read but for those who don't have time for Apple to produce an iPhone 4s it costs £112.89

http://www.dailymail.co.uk/home/mos...es-iPhone-4S-price-How-really-costs-make.html
 
There's a website that breaks this down somewhere. I think the iPhones turned out to have the highest component cost of the mainstream phones.
 
That's business. Don't forget about the millions/billions they spend on R&D and marketing each year.

Yep, but that doesn't allow people to whinge about how much we pay for apple goods. I have seen these figures quite a few times and there are always a good few people who completely ignore the fact that new products don't just pop out of factories every now and again.
 
It's like saying you goto a restaurant and pay for a meal. How much does the chicken cost? The pasta? The veg in it? You can get a £10 meal from anywhere and it won't even come close to half that. What about the effort/skill etc it takes to make that meal? That's what you're paying for.
 
I can't say it bothers me, that's just business.

Plus it doesn't factor in the R&D, shipping and marketing costs, and after sales support. Sure, it's nowhere near £500, but then if nobody turned a profit, how would the retail sector even begin to function?
 
The cost of the iPhone isn't just the hardware. What about the cost of developing iOS, the cost of running the shop you bought it from, the cost of transporting the phones, the salary of the man who sold it to you, the salary of his boss, of the geniuses, the replacement phones, the R&D, the suppliers, the manufacturers (even if they are Chinese), and so on.

Yes, Apple do make a very handsome profit (they wouldn't be one of the richest companies on the planet if they didn't), but the cost of an iPhone is far from just the parts.
 
We get a thread like this every time a new ixxxxxx is released. It's how businesses work, the actual material cost is irrelevant.
 
Don't forget lawyer fees, that's about £300 per phone? :D

There's a website that breaks this down somewhere. I think the iPhones turned out to have the highest component cost of the mainstream phones.

Here's the original isuppli analysis.

http://www.isuppli.com/Teardowns/News/Pages/iPhone-4S-Carries-BOM-of-$188,-IHS-iSuppli-Teardown-Analysis-Reveals.aspx

I always complain about the cost (drags up rrp for all the other high end phones too) but it does have a knock on effect for the whole industry.They could be selling 100 million phones a year soon, imagine how much Sony's making off that $17 camera unit.
 
This shouldn't exactly come as any surprise. The value of the product is determined by what the market will bear - not by the cost of the components, or even the cost of development.

The product is sold for the amount which consumers are willing to pay. Depending on the product, this could be significantly less or significantly more than the cost of production. The two figures aren't closely related.
 
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