Anonymous, 16 Sep 2017Exacly! People pay high price for Apple phones because They Are worth of every penny, unlikel... moreHahaha, good software updates for iPhone compared to Android? That's Apple encourages people to buy another 800-1000$ phone every year? Even with billions spent on advertising they still make 85% of the smartphone market
Typical apple fashion, makes something cheap and sell up to three times more, people will buy it no matter What
No wonder they make billions
It's a dust in the eyes. Paid article to excuse the insane prices of smartphones, not only Apple. No one is pointing out are those prices of components for a single pieces? Because even the average Joe knows that companies get massive discounts when ordering million of components on a contract. I bet the real price for the manufacturing is around 60% of that 412.75. Let's say around 250$ roughly. And the R&D is not that much as they say. 10 million $ to bring entirely new device on market out of rough sketch down to a ready to hit the market - with a half a mil. devices sold that makes 20$ more on the device final price. Give another 10 mill for a advertising, logistics, etc. - here's another 20$ for a half mill units sold. Give another 40 mill for a said device like a exchange broken and defective units. That's 80$ on top. Let's put another 20 mill for something i forgot to mention. that's another 40$. In the end - 80 million $ invested in said device. Alright, let's make it a round 100mil $. That makes 200$ on top of that 412.75 for parts. Half a mill units sold, with a price of 999 - That's 499,5 mill. I know i didn't include a lot of things, but we all know Apple won't sell just a half mill devices. All the companies that hit the magic mark of over half mil unit's sold makes a good profit. Especially when the upgrade a bit some device and polish it a bit. That's pure gold.
akw, 15 Sep 2017why not sell , when they can at high price ? it's not a phone for everyone , maybe they do not... moreExacly!
People pay high price for Apple phones because They Are worth of every penny, unlikely Many Android phones that only have high speck but very poor, quality, very poor softaware upgrades, very poor optimization etc...
People pay what They consider good bargain and to Many, Many people the Apple products Are good bargain.
And no, I don't have Apple phone, because my phones cost something like 100$ and I keep them 3-6 years. So I can not Expect them to be so good as Apple products. They Are far above my wallets leaque. But that does not mean that Apple products Are ower priced. If They would sell badly, then They would be owerprices, but They do sell very well indeed, so They Are priced wery well according to customers!
There is something wrong about this article.
1. The phone they are talking about is 256 gb variant and its priced 1149$ not 999$.
2. According to my other sources - Manufacturing costs
iPhone X - 345$ (Base model)
Galaxy S8 - 307$
Swim Swim, 15 Sep 2017Nerds usually has hard time understanding how the economy works. To them the only cost that ma... moreWell you are right. But Apple makes the highest profit among all the phone manufacturers.
so they actually earn 200$ from every device..not bad..considering they will sell at least 50million...and 10billion earning
Swim Swim, 15 Sep 2017Nerds usually has hard time understanding how the economy works. To them the only cost that ma... morebest post ever i read with first "your magical" sentence . i am nerd and gonna cry tonight for this ... i am not registered to add you as my friend . yeah Nerds / geeks don't know about bazaar and markets . but we always have 2 side ... one is trick is good but scam can't be good never ... i don't know which big companies do ... but as i be in bazaar ... if you just CONSIDER this kind of costs to estimate how much you should sell your things for everyone at same price you will lose your job / start up ASAP . yes there many Unpredictable expense - Taxes - Complications that give from Municipality in our country - or investment and many many other things . is Apple sell Expensive ? Ans: go away out of my way - is Apple can sell cheaper / with off ? sure easily can -- is Apple ... You can't stop buy their products ... Never mind APPLE 10 iPhone --- A massive investment in companies located in Herzliya - they do that's why they have unique such as Face ID . Ugliness and Expensive ON best iOS phone ever
And next year, the reports will show that Apple still makes the highest profits in the smartphone industry again. Why am I not surprised?
Nerds usually has hard time understanding how the economy works. To them the only cost that matters is production cost of the phone(hardware parts) Nothing else considered.. No marketing no R&D costs no logistics no warranty no support costs no quality control..
For these nerds the king of phones, is chinese no name ones which usually making debt for the selling companies example: Most of oneplus products, Motorola under google, Leeco which now is bankrupt etc
Luxor, 15 Sep 2017It does make me wonder why cant they price it lower. Look at chinese brand. They all so cheap.... moreI guess Coca Cola should stop advertising too. Heck, Bill Gates should relax being a billionaire. Lol
Carlos Miguel, 15 Sep 2017"The most expensive component is the 5.8inch OLED panel manufactured by Samsung. Its price is ... moreTaking into account shipping, delivery, putting the thing together etc... Probably will be a bit more, but still high, high, high profit margins. I noticed today a lot of Apple customers don't have much knowledge on the key words Apple use. Retina display which is just Full HD, they had no idea etc... They are a marketing company first and foremost. They make good products, but the exploitation of their customers is savage, but customers don't care, if they pay for it, they really don't care.
You headline clearly states a production cost estimate of $412.75 and then you go ahead to state in the article that that price excludes manufacturing and R&D costs. What do you understand by production cost?
Oathbreaker, 15 Sep 2017Haters of the iPhone X or anything Apple need to realize that Apple is a business. Not a chari... moreUm, weren't You Apple hater some topics ago? And honestly, i would never buy Apple or Samsung device. At least not a 'phone'. So no, i don't want it. And yes, i am successful enough to be able to buy it. Or Samsung flagship.
Bansah, 15 Sep 2017What about Xiaomi they dev. Everything of theirs. Apple too expensiveXiaomi use android. Again the OS is made by Google!
Carlos Miguel, 15 Sep 2017I know that price of components doesn't include the logistics, r&d etc well duuhhh?? We're... moreagreed.
If you buy those part one by one that the price you gonna pay.
Mostly sure its in fact half that price and including all others cost its still under 50% of the new iphone price to produce.