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Forums » New iPhone 3GS Costs $178.96 To Make » And the point is....?
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Why is this news??? »
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cghh

join:2001-01-15
Milpitas, CA

And the point is....?

I'm not sure what the point is. There is a heck of a lot more to a device such as the iPhone than the bill of materials out of which it is made. There is the hardware design and engineering on how to put the parts together. There is the software, including free software upgrades, which is really what make the iPhone what it is. Software development is not cheap. Yes, there is no incremental cost for the software for each unit, but still, this large cost has to be recovered. And, since Apple is a profit-making company, there is the markup for this.

Whenever discussions like this come up, there is always the conflict between people who believe that the cost of an item should be related to the cost of producing it, and those who believe that the price should be whatever the market bears.


canesfan2001

join:2003-02-04
Hialeah, FL
·Comcast
·AT&T Southeast

I think the real issue is that usually, a little bit of knowledge is more dangerous than no knowledge at all. People just don't think about cost of products beyond ingredients.
There's also:
-Assembly
-Packaging
-Shipping
-Hardware Development
-Software Development
-Advertising
-Support
-etc...
--
OASAASLLS
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Forums » New iPhone 3GS Costs $178.96 To MakeWhy is this news??? »
« Qualcom's $13 PMB8878 baseband chip for 3G  


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