16GB iPhone 5 bill of materials estimated at $168 - Page 2

This is pretty meaningless info, considering it is estimates and does not include labor. If this was true, Apple would have a nearly 75% Gross Profit on each 16GB iPhone 5. 

I don't think Apple has that high of gross margins.

Throwing in R&D, marketing, investments in infrastructure, etc. only applies to the net profit. 

Quote:

Originally Posted by Flaneur 


I know what you mean, but like someone said above, Apple is also making money by being efficient—in the supply chain, in the number of models they (don't) sell, in managing their own retail business, in running their own content ecosystem, and in the post-PC realm, by massively colonizing the entirely new economy of portable computing.
Because what they are doing is so new and, not coincidentally, so customer-driven, they are still perceived as the underdog, fighting mediocrity, by millions of fans. We are hoping this new business model will conquer the world, at least in terms of mindshare, and erase some of the worst aspects of the consumer exploitation in America's captalist past. But you have to add one crucial proviso to have all this work out ethically:
We are expecting that they're going to use their cash pile for some really big moves in the future that will change the world even more than they have already. Something on the scale of revolutionizing education, for example, or global communications.

We can already see Apple using its wealth to clean up the world. From Asia, and Australia to All of Europe, Apple is battling corporate greed and corruption.

Fighting with legions of lawyers for Truth, Justice, and the Apple Way!! 

Quote:

Originally Posted by waldobushman 

And some people argue that Americans are not really as dumb as the tests of educational achievement shows, nor is there any good reason to ship jobs overseas because the workforce is too dumb to do the jobs required.

 

Just read the crap comments on this site and other sites and you begin to realize that the vast majority of Americans truly are inferior to rest of the world. 

Maybe you might feel that way about yourself, but I can assure you, there are plenty of idiots around the world.

Quote:

Originally Posted by SolipsismX 


Your facts are axiomatically incorrect. The 4S is 1420mAh.

Hmm. I guess my memory is bad. I confused the voltage bump with a ampere capacity bump.

Different voltage does imply different cell technology which should probably have a different cost.

This guessing the material cost is meaningless. It doesn't include manufacturing, development, licensing, and marketing cost. Further, Apple generally shares its gross profit margins, which is about 28 to 38 percent. 

Instead of whining about how much money the evil capitalist pig Apple makes, you should of bought the stock.     I did !!!!!!

Quote:

Originally Posted by Arlor 

There was a study in the Economist some months back that suggested that essentially all smartphones cost between $160 and $180 to make when new. The glass and aluminum don't seem to actually drive up the component cost much (though I suspect they sharply increased the production cost in other ways: factory equipment, etc.). 

Quote:

Originally Posted by tjwal 

tI doesn't include assembly cost either so the marginal cost is higher than $168. 

The one problem I do have with Apple's pricing though, is the extra $100 for another 16 GB of memory.

This brings up an interesting, tangential point...

Amazon claims they aren't selling Kindle Fires at a loss. Previous articles on AI have mentioned the cost of the Fire's BOM, indicating that they were making a slim profit. But, once we add in the development, manufacturing and support costs, I suspect Jeff Bezos is lying when he says they aren't engaging in razor blade economics. This isn't surprising -- Amazon has never been the most straightforward and honest company when it comes to sales and profits -- but it makes the business model for the Fire seem even less tenable when you consider all the costs associated with it beyond the simple BOM.

that's where you're wrong... assembly costs absolutely nothing, as it's done by CHINESE SLAVES

Originally Posted by sxpert 
that's where you're wrong... assembly costs absolutely nothing, as it's done by CHINESE SLAVES

Should stick to jokes that are at least funny.

Quote:

Originally Posted by photoeditor 

We know from Apple's previous statements and third party research that the profit margins on iPhones are stratospheric. The same, I suspect, is true for other smartphones. You're looking at something like 60 percent margins on the iPhone even after R

It's a market economy ... Apple sells out most every phone they make, why drop the price? Plus, it's not like Apple's competition is hugely undercutting Apple's sales price.

Heck, the iPhones are so popular, the prices are even high in the resale market ...

We know from public filings that Apple's gross margins on iPhone for the last couple of years have been about 50%, and on iPad about 25%.  Since much of that comes from the more expensive models, which don't cost much more to make, that suggests that if you buy the 16GB iPhone or iPad, you get a good deal.  The idea that they are somehow extorting grotesque 300% profits from each phone is nonsense.