Anonymous
Premium
join:2004-06-01
IA | Fanboy tax?
LOL I like that! |
|
bbenso1
join:2004-11-28
Baltimore, MD
| Insufficient Data
Umm, isn't a Bill of Materials alone insufficient data to figure out how much each iPhone costs? Firstly, I'll bet that Bill of Materials doesn't include labor cost. Even if they're mass produced on an assembly line I guarantee there's some payroll cost in there somewhere. Plus it probably doesn't include the cost of the packaging, included manuals, software, etc.; Mastering/duplication of any included software/driver disks; cost of shipping the units to retail outlets, etc., etc. |
|
Shark_615
join:2006-01-17
Pickering, ON | cool
How much of that goes to Cisco? |
|
av8ndv8
Premium
join:2003-05-19
Albuquerque, NM | Not so bad....
These people obviously haven't a clue about manufacturing. A product that sells for only twice what it costs to produce is rare. Once you factor in distributing, sales, overhead and taxes, it's a bargain. But no, I still don't want one. |
|
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
 ·AT&T Midwest
| So what?
Any sane manufacturer sells the product for a multiple of the materials cost. 100% markup over materials cost is not that bad for a non-commodity item, actually.
From that you've got to pay general overhead, marketing costs, tech support costs, return costs, and a lot of other nickel-and-dime expenses.
iSuppli needs to go back to iBusiness iSchool.
--
Toolmaster of La Grange.
Save the Pacific Northwest Tree Octopus! |
|
hayabusa3303
Over 200 mph
Premium
join:2005-06-29
clubs: | forget something.
everyone forgets about R&D of the products.
This is nothing but a BoM. Factor in other things and i bet the profit is more like 30% when done. |
|
jazzy_
join:2004-01-27
Charleston, SC | reply to Anonymous
Re: Fanboy tax?
lol yeah that got a laugh out of me  |
|
TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
 ·Sprint Mobile Broa..
 ·Comcast
| reply to av8ndv8
Re: Not so bad....
said by av8ndv8  :These people obviously haven't a clue about manufacturing. A product that sells for only twice what it costs to produce is rare. Once you factor in distributing, sales, overhead and taxes, it's a bargain. But no, I still don't want one. They are ignoring all those costs in attempt to portray Apple as some greedy crooks. They must know there are other costs, so that estimate is just meant to inflame their socialist readers.
--
--
My BLOG
My Web Page |
|
cobo6
join:2002-02-18
Willingboro, NJ | iphone
they are making their money back....I don't see a lost if the unit does well, but the person above me, what about cisco...then i see a little lost |
|
Grail Knight
Who Dares Wins
Premium
join:2003-05-31 | reply to TKJunkMail
Re: Not so bad....
quote:
so that estimate is just meant to inflame their socialist readers
Seems to be working. |
|
GilbertMark
Premium
join:2001-05-02
Gilbert, AZ | Hmmm
Fanboy tax, huh? How much does it cost to make Windows?
$1 per copy including the box? |
|
Grail Knight
Who Dares Wins
Premium
join:2003-05-31
·Verizon Online DSL
| Very preliminary
It will take at least a good 6 months to a year to determine all the aspects of production IMO.
If demand is high costs to produce should decrease due to bulk parts purchases.
Depending on which country(ies) are producing the phone hourly wages could vary drastically.
--
When the going gets tough the tough run away.
|
|
axus
join:2001-06-18
Washington, DC
·Verizon Online DSL
| yeah thats kind of negligent to leave everything else out
Research costs alone amount to a lot. That's why we have patents, though really they only need a few years of patent protection to make their money back (or not). Clones would still have to pay for marketing, customer support, etc.
Putting it all together in a quality manner has got to cost something. All the costs on top of that must be a lot.
It's still overpriced, but saying they are making 49.3% profit is stupid. Compare to Dell, where you can buy a PC for $499 that is more costly from a manufacturing, support, and infrastructure point of view. And I bet Apple won't sell as many iPhones as Dell does computers, thus the higher cost. |
|
ninjatutle
Premium
join:2006-01-02
San Ramon, CA | Fancy boxes
account for the rest of the cost. Those origami like boxes within boxes must be labor intensive. |
|
Pictor Guy
join:2004-06-21
Sammamish, WA
| Wow! What insight!
I wonder how much it costs MSFT to produce a Vista Retail package? That is, the cost of the CD/DVD, box, cardboard liner, shrink wrap and that nifty little prism sticker. I wonder what the fan boy tax is on that one?  |
|
ninjatutle
Premium
join:2006-01-02
San Ramon, CA | And Vista has to do with the iPhone how? |
|
RocketChild
join:2003-11-24
Round Rock, TX
| Opening Profit Margins.
People don't seem to remember that Apple was only make something like $13 dollars profit on the early iPods. Back in their first few years, Apple was almost loosing money at the price point they were selling them at.
Funny how times change. I am sure there is more to the story. |
|
kyramilan
join:2006-11-26
Pensacola, FL
| reply to GilbertMark
Re: Hmmm
said by GilbertMark :Fanboy tax, huh? How much does it cost to make Windows? $1 per copy including the box? Actually, Vista has cost Microsoft $5 billion to design according to Microsoft. Some estimate up to $7.5 billion.
My laptop disks with XP are DVD-ROMs not CDs.
I guess you think Superman Returns only cost $2 including the box to make. 
Superman Returns Costs (BoxOfficeMojo.com)
Movie = $260+ million ($40m blown on false starts)
Marketing = $100 million
Total with DVDs = $400 million
It is still about $75-100 million in the whole for WB. |
|
kyramilan
join:2006-11-26
Pensacola, FL
| reply to RocketChild
Re: Opening Profit Margins.
Most iPods are about 25% profit now.
XBOX is still selling as a loss leader.
God only knows how much PS3 is costing Sony (a loss of $250 a piece?).
Funny, the WII is profitable.
And, I'm sure the PS2 has made Sony a ton of money.
As far as the iPhone, other than being a piece of crap, the "Fanboy" tax is ridiculous. My cellphone was $499 but I paid $159 for it. To replace, it is about $399 (1 1/2 years later).
Yes, the iPhone is a rip-off. |
|
GilbertMark
Premium
join:2001-05-02
Gilbert, AZ
·Cox HSI
| reply to kyramilan
Re: Hmmm
said by kyramilan :said by GilbertMark :Fanboy tax, huh? How much does it cost to make Windows? $1 per copy including the box? Actually, Vista has cost Microsoft $5 billion to design according to Microsoft. Some estimate up to $7.5 billion. My laptop disks with XP are DVD-ROMs not CDs. I guess you think Superman Returns only cost $2 including the box to make. Superman Returns Costs (BoxOfficeMojo.com) Movie = $260+ million ($40m blown on false starts) Marketing = $100 million Total with DVDs = $400 million It is still about $75-100 million in the whole for WB. "According to Microsoft" well they can say anything they want right?
NEXT.
"I guess you think Superman Returns only cost $2 including the box to make. "
After time yes. :uhhhhhhhhhh:"
--
Got a V3 or a V3i or an L7? Want to get the most out of them? Check out my sites »hacktheV3.com and »hacktheV3i.com and »hacktheL7.com
|
|
