Ecce Homo... and I do mean that in the non-latin sense.
Posted on 07/05/2016 3:24:32 PM PDT by dennisw
The new iPhone 6 and iPhone 6 Plus are very cool. But how much do the devices truly cost to manufacture?
A reader going by the initials P.C. has a question about the new iPhone 6.
"Could you please find out what it actually costs to manufacture the iPhone 6, compared to what we end up shelling out for it?"
So the question ultimately is how much profit are they making?
Best guess: Lots.
The entry-level, 16-gigabyte version of the iPhone 6 starts at $200 plus a two-year contract -- the same price as the iPhone 5s. The larger iPhone 6 Plus starts at $300 with a two-year contract.
But you're still paying for the phone over the life of much of your contract. What you really need to do is look at the cost of a contract-free, or "unlocked," iPhone.
T-Mobile lists the starting price of an unlocked iPhone 6 at $649. The starting price for an unlocked 6 Plus is $749.
That's some serious coin.
As for Apple's expenses, I'll turn to a 2012 report from the research firm UBM TechInsights. It looked at the cost of the made-in-China 16 GB iPhone 5's various components and concluded that Apple shelled out $167.50 to make each of the gadgets. Other reports I've seen place the manufacturing cost closer to $200.
So what's the answer to P.C.'s question? It's probably not far off the mark to figure that Apple is making at least $400 on every iPhone 6 sold.
My feeling about Apple's products is that they're expensive but high quality. You're paying a premium to be in bed with the company.
And, as with any relationship, as long as you go into it with your eyes open, you probably won't be disappointed.
(Excerpt) Read more at latimes.com ...
Hey, Laz.. you making phones these days?
Got sweat shop connections? Hit me up, I got ideas.
WHO THE EFF STOLE MY NAME
He prolly stole it in a blog.
Good thing Chinese slaves make them instead of your countrymen other wise they’d cost $10,000.00 each. /sarc
Ecce Homo... and I do mean that in the non-latin sense.
This is going to be a fun thread.
There are also indirect costs: R&D, administration, regulatory compliance, and all the other expenses associated with running a company.
From the article, it's not clear if the contract manufacturer's margin is included in that direct cost. But, Apple's overseas manufacturers won't build iPhones for free.
“Could you please find out what it actually costs to manufacture the iPhone 6, compared to what we end up shelling out for it? So the question ultimately is how much profit are they making?”
Leave it to the latimes to get it completely wrong. “Profit” isn’t only the margin over the raw manufacturing cost. You gotta pay those tens of thousands on the payroll something.
Suicidal Foxconn coolie bump.
You can add 32GB of flash by just inserting a cheap micro-SD card
It's a 5.5" HD Android phone with all the bells and whistles.
It has dual sim slots...just slip your sim in and it's now your active phone.
The battery is replaceable and costs 6 dollars and ships free.
The phone costs 59.89, there is no tax and shipping is free.
You can see many reviews on youtube and the phone seems to be well received by those that have purchased them.
You can get it in black or white.
The screen is big enough that you can use it as a small tablet.
Also another huge indirect cost: law departments to sue all the copycats who infringe on all the R&D where millions were spent developing the item. Legal costs are huge when protecting patents and copyrights.
That’s $167 in parts, not including engineering, design, labor, other manufacturing costs, advertising, iOS development, cloud services, shipping, sales, customer support, regulatory fees, taxes, and maybe even some profit.
You have a valid point about any product sold to consumers. Why does it cost so much to buy a sandwich or hot dog and soda at most places? The raw ingredients cost pennies. The time invested in slapping it together is measured in a few minutes. Yet there are huge profit margins on over the counter food sold to consumers. It's not fair, I tell you, they should sell it at cost!
I don’t use cellphones. The “woo-woo” waves (EMP’s) fry
brains AND they are like talking into an Oreo cookie. I
can’t listen on one and talk at the same time. I use the
phone in the house if I have to; but I’m losing my voice.
Allergic to Cattbutt and stay hoarse. Can’t get shed of
Cattbutt; so I just croak like a frog.
I don’t fit into modern times. FANG had one of the early
cellphones that took up a whole seat on the car passenger
side. So, I either shared a seat with that phone or else
stayed home & worked typing stuff. Not many had cellphones
back then. Now, EVERYBODY has one & they sneak up behind
you at the grocery store yakking; and you answer them
thinking they asked you a question.
Translation...it doesn't cost much.
It’s only 3G.
If I only consider the cost to manufacture, I would guess a cost in the range of $0.11 to $0.18 each depending on the economy of scale. I wouldn’t expect that apple would share the actual cost to manufacture with the public.
and it's only 59.89 :-)
If you need 4g the Pro version is the DOOGEE 6T, it has 2GB ram and a 13mp rear cam in place of the 8mp in the cheaper DOOGEE 6. It is 115.88 with free shipping. You can shoot video in full 1080p
It has a non-removable battery like the iPhone 6 has.
Then there is the DOOGEE 5 pro for 84.99 and free shipping. It has a 5" HD screen and 4G and it's battery is replaceable.
Could not purge the idea of Laz singling his way through Foxconn to determine cost per unit...
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