What is spooky is to witness the same line of criticism and rethoric of conventional economics and market trends from analysts and internet forum economists every single year for the past 10 years; only to see them eat crow. Never fails. Its like witnessing the real life version of the "Groundhog Day" movie. "Okay, campers, rise and shine, and don't forget your booties 'cause it's cooooold out there today!!.... That's right, woodchuck-chuckers - it's...GROUNDHOG DAY today!"
Well $1 x 35,000,000 units in 4 months will already cover a lot of Apple's bills, if they make $10 per phone, that's 3,500,000,000, if they made $14 pure profit per iPhone 5 sold last quarter, they could buy Blackberry with change left.
Well $1 x 35,000,000 units in 4 months will already cover a lot of Apple's bills, if they make $10 per phone, that's 3,500,000,000, if they made $14 pure profit per iPhone 5 sold last quarter, they could buy Blackberry with change left.
That would be insanely stupid. They're already selling almost that many now. Their average profit is 33% of revenues. If we assume that phones have the same ratio, they're already making $200 per phone. Why in the world would they lower the price enough to get only $14 in profit per phone when your own figures are that they wouldn't increase volume much.
As a rough estimate, using the $200 profit per phone figure, if they dropped the price by $100, they'd need to DOUBLE sales in order to break even (not even counting the additional overheads for the extra units). Not bloody likely.
Oh, and btw, they could buy Blackberry now and not miss the cash at all.
That would be insanely stupid. They're already selling almost that many now. Their average profit is 33% of revenues. If we assume that phones have the same ratio, they're already making $200 per phone. Why in the world would they lower the price enough to get only $14 in profit per phone when your own figures are that they wouldn't increase volume much.
As a rough estimate, using the $200 profit per phone figure, if they dropped the price by $100, they'd need to DOUBLE sales in order to break even (not even counting the additional overheads for the extra units). Not bloody likely.
Oh, and btw, they could buy Blackberry now and not miss the cash at all.
That's my point, if they ONLY made $14 per phone, they could buy the old king with 4 months profit off one product.
These BOM costings are basically just guesses at component/labor costs ONLY, leave out other direct costs of manufacturing, and are not useful for any real analysis of total cost.
Apple's direct costs to manufacture an iPhone have historically been much higher than $200 and right now are probably not less than $325 even for a 5C.
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thanks, I get that a lot.
I see that all the time as well.
That would be insanely stupid. They're already selling almost that many now. Their average profit is 33% of revenues. If we assume that phones have the same ratio, they're already making $200 per phone. Why in the world would they lower the price enough to get only $14 in profit per phone when your own figures are that they wouldn't increase volume much.
As a rough estimate, using the $200 profit per phone figure, if they dropped the price by $100, they'd need to DOUBLE sales in order to break even (not even counting the additional overheads for the extra units). Not bloody likely.
Oh, and btw, they could buy Blackberry now and not miss the cash at all.
That would be insanely stupid. They're already selling almost that many now. Their average profit is 33% of revenues. If we assume that phones have the same ratio, they're already making $200 per phone. Why in the world would they lower the price enough to get only $14 in profit per phone when your own figures are that they wouldn't increase volume much.
As a rough estimate, using the $200 profit per phone figure, if they dropped the price by $100, they'd need to DOUBLE sales in order to break even (not even counting the additional overheads for the extra units). Not bloody likely.
Oh, and btw, they could buy Blackberry now and not miss the cash at all.
That's my point, if they ONLY made $14 per phone, they could buy the old king with 4 months profit off one product.
Apple's direct costs to manufacture an iPhone have historically been much higher than $200 and right now are probably not less than $325 even for a 5C.
http://weaklyreferenced.wordpress.com/2013/09/24/misinformation-week-starring-phonescooper/