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[TS] Report pegs iPhone 4S manufacturing cost at $203 - Page 5

post #41 of 68
This is absurd.

Even if it's true that it's what one of each item costs, you have to take into account that every single item is mass produced. When everything is mass produced, costs go down, not up. This is how manufacturing works.

I would say it's $203 per 30 phones, at least.

edit: Exactly, it says "market price" for each component. Market price is nowhere near what it costs to manufacture, ever.
post #42 of 68
Quote:
Originally Posted by refeek View Post
This is absurd.

Even if it's true that it's what one of each item costs, you have to take into account that every single item is mass produced. When everything is mass produced, costs go down, not up. This is how manufacturing works.

I would say it's $203 per 30 phones, at least.

edit: Exactly, it says "market price" for each component. Market price is nowhere near what it costs to manufacture, ever.
$26 dollars for an advanced processor that fits in your phone, runs unreal engine 3.0 games and won't melt your phone sounds pretty reasonable to me.
post #43 of 68
The costs for the iphone explained on the comment are highly unrealistic.

When you mass produce first of all you buy parts considering a % of damaged goods.

This is inssured of course.

Lets say you buy for a market of 60million iphones.
Depending on each company and insurance you have to buy 62 to 68 million parts.
Those parts are basically the cost of making plus an average of 30% markup for the supplier.

Every Phone brought back gets payed by the insurance and added to the suppliers premium.

So basically a phone like iPhone would cost about 60 dollars mas produced without counting R&D but be sure with the billions they rake in they wont have trouble paying there salaries.

And the phones are cheaper to destroy than replace broken parts btw.
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post #44 of 68
Quote:
Originally Posted by ZealotKi11er View Post
What kind of R&D does something from iP4 to iP4S need? Just testing? Adding a A5 and a better Camera? Its the least R&D Money spend in an iPhone ever. People are mostly the ones the do the Beta testing for Free for stuff like signal system bugs. Also the Phone just parts would Cost $200 but what about buying it in millions?
They probably spent the majority of their R&D/programming for this particular release on Siri and the dual antennas.
post #45 of 68
Considering the pure volume of iPhones that are moved by Apple there is no way r&d adds more than $50 per phone(and thats assuming they spend $250,000,000/year of an iPhones roughly 2 year life cycle on r&d just for the iPhone). Also Foxconn likely doesn't mark up more than 10-15% selling to Apple after they manufacture it so I'd say Apple's cost is no greater than $320/phone.
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post #46 of 68
Sweeeeet a front facing 8MP 1080p camera!
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post #47 of 68
Quote:
Originally Posted by yutzybrian View Post
Sweeeeet a front facing 8MP 1080p camera!
Yeah but the rear camera is 0.3MP

   
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post #48 of 68
Quote:
Originally Posted by Kr3n View Post
Considering the pure volume of iPhones that are moved by Apple there is no way r&d adds more than $50 per phone(and thats assuming they spend $250,000,000/year of an iPhones roughly 2 year life cycle on r&d just for the iPhone). Also Foxconn likely doesn't mark up more than 10-15% selling to Apple after they manufacture it so I'd say Apple's cost is no greater than $320/phone.
Interesting... the total for R&D expenditures for Apple in the quarter (3 months) ending June 25th was $628M. I'd say it's reasonable that 1/10 of that would be spent on iPhone development, which would give a yearly average expenditure of $251.2M.

Of course, there's other fixed costs to account for (building/land being a major one), but this is still probably the most reasonable guess as to the actual burdened cost of each phone.

Apple does make a butt-ton of money. They've already netted $20B in the last 9 months! NETTED!
post #49 of 68
Quote:
Originally Posted by SgtSpike View Post
Plus R&D, plus programmers, plus design staff, plus administration, plus secretaries, plus land/buildings rent and depreciation, plus inventory shrinkage expenses, etc etc etc.

Assuming that it only costs Apple $203 per iPhone is completely naive.
Agreed. There are clearly far more costs involved here that don't include hardware.

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post #50 of 68
Man, batteries are cheap.
 
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