Read more.Apple continues to make good margin.
Read more.Apple continues to make good margin.
What was the BOM cost of the iPhone 4?
I wonder what the proper total cost of each phone is.
$200 to make, and they sell it for £500 ?
Now, that's some ripoff!
Factor in transport, packaging, distribution costs and those margins aren't quite as good.
But it is only a rip off if you are forced to buy or Apple have a monopoly on smart phones. They don't - people4 buy them of their own free will, because that is what they want, at a price they are prepared to pay.
But that is true of most consumer goods.
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If you sold items at cost price, you would quickly go out of business! Should Calvin Klein sell underpants for 20p if that's all they cost to produce in China/India?
Aren't most consumers goods generally cost price x 3? This is how high-street shops can still make a profit when they have their 50% off sales.
This only takes in to account the cost of the components used in the phone and not staff, advertising, design ect, the overheads cost tens of thousands (if not alot more) a day
Someone left a note on a piece of cake in the fridge that said, "Do not eat!". I ate the cake and left a note saying, "Yuck, who the hell eats paper ?
When you're shifting large numbers of stock, shipping and packaging are much cheaper than you would expect, iPhones are relatively small and lightweight devices and very cheap to ship in bulk.
The primary factor is that there has to be something in it for the network operators and other distributors who will take a cut, however most other mobile phone manufacturers sell at much lower margins than Apple and so there is certainly a large element of overpricing.
Selling at cost will not drive you out of business as such, as cost includes staff salaries, but what it doesn't cover is the capital needed to bulk-purchase parts or perform R&D, things that are important for going forward with a business idea.
How does that compare to the BOM for a samsung galaxy S2 or similar?
We see teardowns and BOMs for apple products, but its pointless withut comparing to others.
It's very hard to come by, and slightly difficult as a lot of Samsung's components are their own and so what did it cost them to make it as opposed to what they sell them at etc. Some may even not be sold outside of Samsung.
Having said that there are a few figures flying about.
Wow. No wonder the profits are astonishing.
Folks you need to factor in R&D for such products cause I bet that's a whooping amount to add on.
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