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dynodbPremium,VIP
join:2004-04-21
Minneapolis, MN | reply to djhexer
Re: The real question is... said by djhexer:Why do manufactures charge sooo musch for equipment?? The iphone only costs how much to make??? like 20.00-50.00 per phone and at full price it cost a consumer almost 700.00??? hell you could charge a customer 299.99 for the phone w/o contact and still come out ahead (after paying for parts, employee wages, etc. etc.) If you believe that it costs no more than $50 to make an iphone, it's probably time to adjust your meds.
Even if that were the case, the manufacturing cost is irrelevant, as it'll always be lower than the wholesale cost. | | |
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Eek2121Lovin Verizon FIOS
join:2002-10-12
Newton, NJ Reviews:
 ·Service Electric..
| said by dynodb:said by djhexer:Why do manufactures charge sooo musch for equipment?? The iphone only costs how much to make??? like 20.00-50.00 per phone and at full price it cost a consumer almost 700.00??? hell you could charge a customer 299.99 for the phone w/o contact and still come out ahead (after paying for parts, employee wages, etc. etc.) If you believe that it costs no more than $50 to make an iphone, it's probably time to adjust your meds. Even if that were the case, the manufacturing cost is irrelevant, as it'll always be lower than the wholesale cost. And you really need to adjust yours. The iPhone 3GS costs $200 counting materials and labor. The only thing to recoup would be R&D costs. Selling a 3GS for $299 would net apple a decent profit. The only 'reason' the 3GS costs so much is to allow for carrier lock in. Phone manufacturers do this because they can get away with profiting more, and carriers do this because it locks the user into service for 2 years. It's a win for the carrier, a win for the phone manufacturer, and a loss for the consumer.
How many people here would buy an iPhone 3GS w/o contract if it worked with any GSM carrier and only costed $299?
Am I saying that companies aren't allowed to make money? Not in the least, but i don't believe that businesses should be allowed to make a 300-350% profit. This is obscene and clearly shows little regard to the consume.
Remember, most large corporations treat their customers like sheep. You can say 'vote with your dollars' all you want, but sheep tend to follow the herd, and the minority (like me) who do vote with their dollars shed very little off a company's bottom line. | |
bsoft
join:2004-03-28
Boulder, CO | reply to dynodb
said by dynodb:If you believe that it costs no more than $50 to make an iphone, it's probably time to adjust your meds. Even if that were the case, the manufacturing cost is irrelevant, as it'll always be lower than the wholesale cost. Well, it's impossible to estimate exactly how much the iPhone costs to manufacture, and exactly what it would be priced at if it were sold only as an unlocked device.
However, the 32GB iPod Touch runs $300; even if we add in $100 for the GSM/UMTS chipset, camera, and GPS (there are unlocked phones for under $100 retail that contain all of these) we're looking at around $400. Which, incidentally, is what Apple charged fro the iPhone when it was unsubsidized.
A reasonable price for the 32GB iPhone 3Gs should be around $400, although as you point out it's not costs that set prices (that said, Apple would certainly be making a healthy profit at $400, at least as much as they make on the iPod Touch).
Considering that the subsidized price for the 32GB iPhone 3Gs is $300, we can conclude that the subsidy is worth about $100. | |
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