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Thread: News - iPhone 4S 16GB teardown shows $188 BOM cost

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    News - iPhone 4S 16GB teardown shows $188 BOM cost

    Apple continues to make good margin.
    Read more.

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    What was the BOM cost of the iPhone 4?

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    Quote Originally Posted by Hoonigan View Post
    What was the BOM cost of the iPhone 4?
    Initially $187.51 and later through a refresh reduced to $171.35.

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    I wonder what the proper total cost of each phone is.

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    Quote Originally Posted by Defiant View Post
    I wonder what the proper total cost of each phone is.
    Yeah, I'd be interested to know how much it cost Apple to produce, ship and sell on these phones. I reckon it can't be much higher than $220 to completely deliver the product to the public.

    It's a long shot, I know, but does anyone have any information on this?

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    OilSheikh
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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    $200 to make, and they sell it for £500 ?

    Now, that's some ripoff!

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    Quote Originally Posted by OilSheikh View Post
    $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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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    Quote Originally Posted by OilSheikh View Post
    Now, that's some ripoff!
    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.

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    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 ?

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    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.

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    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.
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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    Quote Originally Posted by mikerr View Post
    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.

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    Wow. No wonder the profits are astonishing.

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    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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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    Quote Originally Posted by OilSheikh View Post
    $200 to make, and they sell it for £500 ?

    Now, that's some ripoff!
    The HTC Sensation is about $500 SIM free and it's probably cheaper to make. All phones are massively marked up so you're forced into contracts. Apple aren't alone in this, this is industry standard.

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    Re: News - iPhone 4S 16GB teardown shows $188 BOM cost

    Quote Originally Posted by peterb View Post
    Factor in transport, packaging, distribution costs and those margins aren't quite as good.
    We transport, package, and distributed €10 Irish cottages from China for gift shops in far more limited volumes and still make decent money out of it. I'm going to go out on a limb here and say that Apple are getting a much better distribution deal than those.
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    ...every time Creative bring out a new card range their advertising makes it sound like they have discovered a way to insert a thousand Chuck Norris super dwarfs in your ears...

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