Uh, but we're pricing them at the same moment, so it's a perfectly reasonable assumption. It could be a little more than twice though because you may pay a price premium for higher density. Then again if the 32GB part is made in higher volume i could actually be less than twice the price. I doubt it though.
As with any larger memory module, production costs are certain to drop significantly over time.
That's really the only complaint I have with Apple. Like TV's Apple products aren't manufactured in the US. I understand the labor cost differences, (US vs. China) but then I think of these millions of ipods, iphones, laptops, imacs, etc. being shipped across the Pacific in 747's and the millions of tons of jet fuel being used. Think of the carbon footprint of Apple?
Anyway, got to get in my SUV and go have a hamburger at McDonald's, and make some calls on my iPhone!
Market research firm iSuppli, which specializes in dismantling new electronic gadgets to identify their key components and assembly costs, estimates Apple's bill of materials (or BOM) on the 16GB iPhone to be $172.46 with a manufacturing expense of $6.50, for a total of $178.96.
Considering that it costs about $155 to make an iPod Touch (see here for instance), I find it difficult to understand why the unsubsidised price of an iPhone is not within $100 of the price of an iPod Touch (of the same memory capacity). Are iPhone prices high as a subsidy that allows iPod Touch prices to be lower? Or is there insufficient competition for the iPhone that allows Apple (and/or AT&T, Rogers, etc) to be able to charge monopolistic prices?
Apple must be making a mint on these devices, assuming they sell them to the carriers to subsidise for $499/$599, and the carrier (or Apple Store) whacks on a $100 profit for themselves which is factored into the contract, resulting in $599/$699 devices.
Even when all other costs are factored in, 20 million or more devices sold over the next year will drive the per-device cost down way low. Apple could be making more than 100% margin here. Talk about laughing all the way to the bank. There's just no competition - Palm needs to charge a lot to make some income to keep them afloat. WinMob is irrelevant. Android is too young and geeky. BB, well they like profits too.
Even assuming $250 profit per device on average, that's $5b profit in the next year (of course, split over 24 months, so Apple's quarterly figures are going to continue to be nice for some time to come).
Am i missing something or does that hardware support CDMA?
I believe it always has, but of course the firmware doesn't. I've never understood the claims that it would be an issue of cost for Apple to support CDMA...other than the exclusivity/subsidy deal with AT&T. However, even that I don't fully understand because it seems like Verizon and AT&T would get in a subsidy war if Apple released it for Verizon as well.
I'm not saying it wouldn't cost anything to develop and test the CDMA firmware, but the cost would pale in comparison to the additional sales.
Considering that it costs about $155 to make an iPod Touch (see here for instance), I find it difficult to understand why the unsubsidised price of an iPhone is not within $100 of the price of an iPod Touch (of the same memory capacity).
Products are priced based on the market and demand. Unsubsidized smartphone prices range between $400 and $600 therefore Apple need to price the iPhone within that range.
As with any larger memory module, production costs are certain to drop significantly over time.
In this case, the 32Gb will probably be about double the 16Gb. The chip they are using is a multi-layer package, so they effectively add more individual bits of silicon into the same package, to get the memory size they want. Both chips will be manufactured with the same density, but the 32Gb will have twice as many bits of silicon in there. The price will be slightly more than double, as the wiring inside the package will be more complex.
There have been NUMEROUS complaints on Apple's discussion boards of the 3GS display not having the same color "pop" -- i.e. colors are dimmer and blacks are gray. I've noticed the same thing. It looks like Apple may be using a cheaper LCD in the 3GS. The LCD in the 3GS costs $19.95 per the article here.
How much did the LCD in the 3G cost?
It's really hard to compare displays, even side by side. The issue is that you can't accurately set the brightness to one specific value, unless you crank it all the way up, or all the way down. Side by side, my 3GS has significantly higher brightness than the 3G. This will result in colors being dimmer and blacks grayer. But...it's also brighter, and can reveal more details (for example, I looked at some photos from a car show, and with the brightness all the way up, I could see the words on the tires with the 3GS, but not the 3G). This was a very subtle thing, but definitely showed the difference.
Bringing the brightness down would make the displays match, but again, it's hard to do this with precision until the jailbreak for the 3GS comes out and you can use exact numeric values.
On a side note, I miss the cooler color of the original iPhone/OS. I remember when I got the 3G thinking I was going to have a hard time living with the brown display (they fixed it a bit with firmware, but it's still too warm for me).
I believe it always has, but of course the firmware doesn't. I've never understood the claims that it would be an issue of cost for Apple to support CDMA...other than the exclusivity/subsidy deal with AT&T. However, even that I don't fully understand because it seems like Verizon and AT&T would get in a subsidy war if Apple released it for Verizon as well.
I'm not saying it wouldn't cost anything to develop and test the CDMA firmware, but the cost would pale in comparison to the additional sales.
I thought everything CDMA was owned by qualcom and apple would have to pay them licensing costs
In sept i think they will speed bump the MBP mini air line ups. and the IMAC might go native and we get 4 choices . 2 old models price reduced and 2 new models with faster and better stuff inside.
Maybe it will be a uni body IMAC with the 2 GPU chip's and quad core CPU chip with sd card slot.
>>>>>>>>>>>>>>>>>>>>>>>>
MY DREAM MACHINE BELOW
One 2.93GHz Quad-Core Intel Xeon8GB (4x2GB)
Mac Pro RAID Card1TB
7200-rpm Serial ATA 3Gb/s1TB
7200-rpm Serial ATA 3Gb/s1TB
7200-rpm Serial ATA 3Gb/s1TB
7200-rpm Serial ATA 3Gb/s1TB
4x NVIDIA GeForce GT 120 512MB
Two 18x SuperDrives
Apple Cinema HD Display (30" flat panel
)Apple Cinema HD Display (30" flat panel)Apple
Wireless Mighty MouseApple Keyboard with Numeric Keypad (English) and User's GuideAirPort Extreme Wi-Fi Card with 802.11nQuad-channel
4Gb Fibre Channel PCI Express card
iWork '09 Family Pack preinstalledFinal Cut Express preinstalled
Aperture preinstalled
Logic Express preinstalled
FileMaker Pro 10 preinstalled
Xsan 2Apple Mini DisplayPort to DVI AdapterMini DisplayPort to Dual-Link DVI AdapterApple Mini DisplayPort to VGA Adapter1-year Family Pack subscription1-year One to One membershipAppleCare Protection Plan for Mac Pro (w/or w/o Display) - Auto-enrollCanon PIXMA MX860 Office All-in-One Printer
>>>>>>
ONLY 12995 DOLLARS
OF COURSE I
WOULD HAVE A 1080p 50 inch plasma for game playing attached .
I wonder if/when Apple would use the temperature sensor to throttle the speed of that processor. Reports say it's currently clocked at 600ghz but has the ability to go up to 833ghz. Of course, the reason they don't may be a battery issue more than a heat issue...
Products are priced based on the market and demand. Unsubsidized smartphone prices range between $400 and $600 therefore Apple need to price the iPhone within that range.
What you describe is monopolistic pricing. If we assume that the Touch is sold at a competitive price, then the competitive price for the iPhone is around $300 (for the 16GB model) and $400 (for the 32GB model). As you cannot buy an iPhone at those prices, the consumer is suffering.
If it really does cost other companies $400 to $600 to produce an iPhone competitor, they should be driven out of business and replaced with other firms that are better able to compete. It is the wireless carriers (in my opinion) that introduce this monopolistic pricing. I really wish that Apple (and other handset manufacturers) would cut them out of the equation. Your internet provider is not allowed to inflate the price of your computer, why are wireless providers allowed to inflate the price of phones?
That's really the only complaint I have with Apple. Like TV's Apple products aren't manufactured in the US. I understand the labor cost differences, (US vs. China) but then I think of these millions of ipods, iphones, laptops, imacs, etc. being shipped across the Pacific in 747's and the millions of tons of jet fuel being used. Think of the carbon footprint of Apple?
Anyway, got to get in my SUV and go have a hamburger at McDonald's, and make some calls on my iPhone!
Apple re did all there boxes and saved 40 % in room. They also went %60 green ON many products and %100 percent green by year end . Go to the apple sore and watch the green video . it makes all tHe DELL'S l look like toxic mud.
But yes
why can't apple make a factory in america or canada or nova scotia .??
Even assuming $250 profit per device on average, that's $5b profit in the next year (of course, split over 24 months, so Apple's quarterly figures are going to continue to be nice for some time to come).
Comments
Uh, but we're pricing them at the same moment, so it's a perfectly reasonable assumption. It could be a little more than twice though because you may pay a price premium for higher density. Then again if the 32GB part is made in higher volume i could actually be less than twice the price. I doubt it though.
As with any larger memory module, production costs are certain to drop significantly over time.
Yes they do, it's called jailbreaking.
Sorry, I was referring to Apple-accepted ways - or ways in which users can expect Apps on the App Store to function.
Manufacturing costs. $6.50.
Anyway, got to get in my SUV and go have a hamburger at McDonald's, and make some calls on my iPhone!
mostly an event in first weeks September with
1) Snow Leopard release date
2) iPod update
3) iMac update with some quad config and shipping with Snow Leopard
Forget update- we were talking overhaul.
Market research firm iSuppli, which specializes in dismantling new electronic gadgets to identify their key components and assembly costs, estimates Apple's bill of materials (or BOM) on the 16GB iPhone to be $172.46 with a manufacturing expense of $6.50, for a total of $178.96.
Considering that it costs about $155 to make an iPod Touch (see here for instance), I find it difficult to understand why the unsubsidised price of an iPhone is not within $100 of the price of an iPod Touch (of the same memory capacity). Are iPhone prices high as a subsidy that allows iPod Touch prices to be lower? Or is there insufficient competition for the iPhone that allows Apple (and/or AT&T, Rogers, etc) to be able to charge monopolistic prices?
Even when all other costs are factored in, 20 million or more devices sold over the next year will drive the per-device cost down way low. Apple could be making more than 100% margin here. Talk about laughing all the way to the bank. There's just no competition - Palm needs to charge a lot to make some income to keep them afloat. WinMob is irrelevant. Android is too young and geeky. BB, well they like profits too.
Even assuming $250 profit per device on average, that's $5b profit in the next year (of course, split over 24 months, so Apple's quarterly figures are going to continue to be nice for some time to come).
Am i missing something or does that hardware support CDMA?
I believe it always has, but of course the firmware doesn't. I've never understood the claims that it would be an issue of cost for Apple to support CDMA...other than the exclusivity/subsidy deal with AT&T. However, even that I don't fully understand because it seems like Verizon and AT&T would get in a subsidy war if Apple released it for Verizon as well.
I'm not saying it wouldn't cost anything to develop and test the CDMA firmware, but the cost would pale in comparison to the additional sales.
Considering that it costs about $155 to make an iPod Touch (see here for instance), I find it difficult to understand why the unsubsidised price of an iPhone is not within $100 of the price of an iPod Touch (of the same memory capacity).
Products are priced based on the market and demand. Unsubsidized smartphone prices range between $400 and $600 therefore Apple need to price the iPhone within that range.
As with any larger memory module, production costs are certain to drop significantly over time.
In this case, the 32Gb will probably be about double the 16Gb. The chip they are using is a multi-layer package, so they effectively add more individual bits of silicon into the same package, to get the memory size they want. Both chips will be manufactured with the same density, but the 32Gb will have twice as many bits of silicon in there. The price will be slightly more than double, as the wiring inside the package will be more complex.
There have been NUMEROUS complaints on Apple's discussion boards of the 3GS display not having the same color "pop" -- i.e. colors are dimmer and blacks are gray. I've noticed the same thing. It looks like Apple may be using a cheaper LCD in the 3GS. The LCD in the 3GS costs $19.95 per the article here.
How much did the LCD in the 3G cost?
It's really hard to compare displays, even side by side. The issue is that you can't accurately set the brightness to one specific value, unless you crank it all the way up, or all the way down. Side by side, my 3GS has significantly higher brightness than the 3G. This will result in colors being dimmer and blacks grayer. But...it's also brighter, and can reveal more details (for example, I looked at some photos from a car show, and with the brightness all the way up, I could see the words on the tires with the 3GS, but not the 3G). This was a very subtle thing, but definitely showed the difference.
Bringing the brightness down would make the displays match, but again, it's hard to do this with precision until the jailbreak for the 3GS comes out and you can use exact numeric values.
On a side note, I miss the cooler color of the original iPhone/OS. I remember when I got the 3G thinking I was going to have a hard time living with the brown display (they fixed it a bit with firmware, but it's still too warm for me).
I believe it always has, but of course the firmware doesn't. I've never understood the claims that it would be an issue of cost for Apple to support CDMA...other than the exclusivity/subsidy deal with AT&T. However, even that I don't fully understand because it seems like Verizon and AT&T would get in a subsidy war if Apple released it for Verizon as well.
I'm not saying it wouldn't cost anything to develop and test the CDMA firmware, but the cost would pale in comparison to the additional sales.
I thought everything CDMA was owned by qualcom and apple would have to pay them licensing costs
Me neither. When do you think it will happen?
In sept i think they will speed bump the MBP mini air line ups. and the IMAC might go native and we get 4 choices . 2 old models price reduced and 2 new models with faster and better stuff inside.
Maybe it will be a uni body IMAC with the 2 GPU chip's and quad core CPU chip with sd card slot.
>>>>>>>>>>>>>>>>>>>>>>>>
MY DREAM MACHINE BELOW
One 2.93GHz Quad-Core Intel Xeon8GB (4x2GB)
Mac Pro RAID Card1TB
7200-rpm Serial ATA 3Gb/s1TB
7200-rpm Serial ATA 3Gb/s1TB
7200-rpm Serial ATA 3Gb/s1TB
7200-rpm Serial ATA 3Gb/s1TB
4x NVIDIA GeForce GT 120 512MB
Two 18x SuperDrives
Apple Cinema HD Display (30" flat panel
)Apple Cinema HD Display (30" flat panel)Apple
Wireless Mighty MouseApple Keyboard with Numeric Keypad (English) and User's GuideAirPort Extreme Wi-Fi Card with 802.11nQuad-channel
4Gb Fibre Channel PCI Express card
iWork '09 Family Pack preinstalledFinal Cut Express preinstalled
Aperture preinstalled
Logic Express preinstalled
FileMaker Pro 10 preinstalled
Xsan 2Apple Mini DisplayPort to DVI AdapterMini DisplayPort to Dual-Link DVI AdapterApple Mini DisplayPort to VGA Adapter1-year Family Pack subscription1-year One to One membershipAppleCare Protection Plan for Mac Pro (w/or w/o Display) - Auto-enrollCanon PIXMA MX860 Office All-in-One Printer
>>>>>>
ONLY 12995 DOLLARS
OF COURSE I
WOULD HAVE A 1080p 50 inch plasma for game playing attached .
>>>>>
a dream machine
Products are priced based on the market and demand. Unsubsidized smartphone prices range between $400 and $600 therefore Apple need to price the iPhone within that range.
What you describe is monopolistic pricing. If we assume that the Touch is sold at a competitive price, then the competitive price for the iPhone is around $300 (for the 16GB model) and $400 (for the 32GB model). As you cannot buy an iPhone at those prices, the consumer is suffering.
If it really does cost other companies $400 to $600 to produce an iPhone competitor, they should be driven out of business and replaced with other firms that are better able to compete. It is the wireless carriers (in my opinion) that introduce this monopolistic pricing. I really wish that Apple (and other handset manufacturers) would cut them out of the equation. Your internet provider is not allowed to inflate the price of your computer, why are wireless providers allowed to inflate the price of phones?
That's really the only complaint I have with Apple. Like TV's Apple products aren't manufactured in the US. I understand the labor cost differences, (US vs. China) but then I think of these millions of ipods, iphones, laptops, imacs, etc. being shipped across the Pacific in 747's and the millions of tons of jet fuel being used. Think of the carbon footprint of Apple?
Anyway, got to get in my SUV and go have a hamburger at McDonald's, and make some calls on my iPhone!
Apple re did all there boxes and saved 40 % in room. They also went %60 green ON many products and %100 percent green by year end . Go to the apple sore and watch the green video . it makes all tHe DELL'S l look like toxic mud.
But yes
why can't apple make a factory in america or canada or nova scotia .??
9
Even assuming $250 profit per device on average, that's $5b profit in the next year (of course, split over 24 months, so Apple's quarterly figures are going to continue to be nice for some time to come).
$325 profit per piece.
9