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[IHS] iPhone 4s costs $188 to manufacture - Page 5

post #41 of 73
Quote:
Originally Posted by Joephis19 View Post
This obviously doesn't factor in the cost of sheep food for the lines outside apple stores on release date.
I'd love to sig that.
post #42 of 73
So what? Who cares? Does the article go into detail about how much they spent on R&D and on advertising? If not, then this is irrelevant information and those who are crying because the phone costs considerably more then $188 clearly have no idea how the world works.

Im going to guess that 50% of the retail price is on advertising.


And no, im not an Apple fanboi, im a common sense fanboi.



EDIT: source link only links to the attached image, not the original article.
Edited by Mach 5 - 10/21/11 at 5:29am
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post #43 of 73
Quote:
Originally Posted by Somenamehere View Post
I wonder if that $8 manufacturing cost counts labor.

In china? Yes.

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post #44 of 73
Quote:
Originally Posted by da tick 07 View Post
People don't understand the millions of dollars that go into R&D even with this small of a change. They still need to sell a hell of a lot of iPhones to break even. They offered iOS5 free to all other users which they had to "port" I guess you can call it to those devices and set up the servers to handle all of the downloads. All smartphones are over priced period. The US government spends BILLIONS on research and development of things that are either useless, don't work, or are obsolete by the time they are finished. Apple has to deal with the same thing on a smaller scale and they will lose some money in this.

I had the opportunity to visit various R&D departments and while I wasn't able to see half of it, there are thousands of people working in multiple countries on the same project which costs some serious money.

And I actually don't like Apple. Go figure lol
Apple's R&D is currently 2.2% of sales. Compare that to 13% for MS, 6% for IBM, or 14% for Google.
Tack on even 10% of the price of an unlocked iphone and you still get less than $300 in total costs.

Here's a chart courtesy of ZDnet (article date is 17 October 2011)


Figures from 2009 (source)


50 Biggest R&D Spenders (source note: numbers from 2007)
Rank Company R&D, MOST RECENT FOUR QUARTERS
1 MICROSOFT $7,420,000,000
2 IBM $6,153,000,000
3 INTEL $5,755,000,000
4 CISCO $4,730,000,000
5 HEWLETT-PACKARD $3,632,000,000
6 ORACLE $2,496,000,000
7 SAP $2,296,330,000
8 GOOGLE $2,120,000,000
9 SUN MICROSYSTEMS $1,937,000,000
10 ADVANCED MICRO DEVICES $1,847,000,000
11 EMC $1,526,928,000
12 YAHOO $1,084,000,000
13 SEAGATE $939,000,000
14 SYMANTEC $890,000,000
15 APPLE $844,000,000
16 CA $657,000,000
17 ADOBE SYSTEMS $613,242,000
18 INTUIT $544,137,000
19 CADENCE DESIGN SYSTEMS $494,000,000
20 AUTODESK $452,800,000
21 NETWORK APPLIANCE $436,039,000
22 VMWARE $285,941,000
23 BEA SYSTEMS $240,578,000
24 MCAFEE $218,000,000
25 PALM $213,994,000
26 NOVELL $208,370,000
27 BMC SOFTWARE $207,000,000
28 CITRIX SYSTEMS $205,000,000
29 PARAMETRIC TECHNOLOGY $166,000,000
30 VERISIGN $160,000,000
31 SYBASE $153,000,000
32 NATIONAL INSTRUMENTS $127,000,000
33 TERADATA $126,000,000
34 QUEST SOFTWARE $123,000,000
35 COMPUWARE $109,000,000
36 REALNETWORKS $103,000,000
37 TIBCO SOFTWARE $92,924,000
38 NUANCE COMMUNICATIONS $92,000,000
39 RED HAT $91,125,000
40 LAWSON SOFTWARE $81,488,000
41 WIND RIVER SYSTEMS $81,432,000
42 PROGRESS SOFTWARE $80,345,000
43 INFORMATICA $70,000,000
44 OPENWAVE SYSTEMS $65,369,000
45 SALESFORCE.COM $63,812,000
46 TRIZETTO GROUP $62,000,000
47 BORLAND SOFTWARE $57,795,000
48 SILICON GRAPHICS $57,000,000
49 ANSYS $56,000,000
50 MSC SOFTWARE $53,000,000
Edited by hajile - 10/21/11 at 7:01am
post #45 of 73
Quote:
Originally Posted by Spade616 View Post
some just like to critic apple every chance they get. its not like theyre the only company making huge profits.

btw, i wouldnt be surprised if 200-dollar air jordan only cost 30 bucks to make.
Again, what is wrong with a company making huge profits? If they create a good product, then they (and their shareholders) deserve it... just like if you worked hard and had 3 jobs, you would deserve the benefit of a triple paycheck.
post #46 of 73
Quote:
Originally Posted by WC_EEND View Post
and yet they sell the 16GB version for 799 euros (1092 USD) over here (without any contract obviously). Am I the only one who thinks this is slightly overpriced?
Dude, where do you shop?
I'm also from belgium and I have yet to see such ridiculous prices.
post #47 of 73
Quote:
Originally Posted by SgtSpike View Post
Again, what is wrong with a company making huge profits? If they create a good product, then they (and their shareholders) deserve it... just like if you worked hard and had 3 jobs, you would deserve the benefit of a triple paycheck.
There's nothing particularly wrong about it. But they have the opportunity to offer a product at a much lower price than they are - allowing people who couldn't afford it before, to consider it - and just generally putting an extra ton in peoples back pocket. I don't expect them to, they're a business - and more specifically, they're Apple.
post #48 of 73
Quote:
Originally Posted by Joephis19 View Post
This obviously doesn't factor in the cost of sheep food for the lines outside apple stores on release date.
Was thinking something along the same lines.

Quote:
Originally Posted by SgtSpike View Post
Lol @ people blaming a company for making money.
Nobody is blaming a company for making money. Lol @ u not being able to comprehend thoughts and ideas.
    
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post #49 of 73
Quote:
Originally Posted by Somenamehere View Post
I wonder if that $8 manufacturing cost counts labor.
Yes remember they are made in China and China doesn't have any labour laws. I think the minimum wage in China is $0.10USD per day
    
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post #50 of 73
Quote:
Originally Posted by FtL1776 View Post
Wrong.

The A5 is huge. Yet it still only costs $15? No.
Actually, yeah, $15 sounds about right.

Quote:
Originally Posted by xPwn View Post
Yeah, Apple is a profit opportunity hog. Never liked iPhones anyway

R&D and marketing costs need to be made up, y'know.
    
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