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[IHS] iPhone 4s costs $188 to manufacture - Page 7

post #61 of 73
why are you guys still arguing about how much money apple makes?
post #62 of 73
Quote:
Originally Posted by MintMouse View Post
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.
Any company should offer their product at the price point that maximizes profit - both short-term and long-term. Obviously, for the iPhone, a starting price of $649 (or $199 under contract) is the price point that maximizes profit. To NOT price a product at that price point would mean that the company president is not following his fiduciary duty.

Also, think about what would happen if Apple DID price the iPhone lower.

More people would buy them, meaning less competitor's phones would be purchased. In turn, down the road, fewer alternatives would be present, because creating an alternative isn't deemed as profitable.

Apple would have less profits to turn into dividends for investors. And guess who investors are? Millionaire and billionaires certainly, but also mom and pops who are saving for retirement in their 401k.

Venture capitalists are discouraged from investing in startups in the hopes of finding "the next Apple", because Apple isn't something all that special anymore in terms of profitability and stock value.

My point is, it's not a bad thing if a company makes a lot of money.
post #63 of 73
Quote:
Originally Posted by SgtSpike View Post
My point is, it's not a bad thing if a company makes a lot of money.
there was never anything intrinsically wrong with making a lot of money.
post #64 of 73
$188 that is wayy over estimated, there is no way that phone costs $188 in parts, that is just apple saying they make less profit than they actually do.
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post #65 of 73
Quote:
Originally Posted by Joephis19 View Post
Apple's Profit Margin

BP's Profit Margin

Yes. Apple is a profit hog. Almost 4x the profit margin of an oil company after taxes.
But this may not be a great comparison to make. BP has a lot of competition from other oil companies. They also sell an identical product. When someone needs to fill up their car they can look at the pricing board and know right away whether it's cheaper than the Shell station a few meters down the road. Therefore, oil companies have to set their prices within the same range as their competitors to maintain sales.

Phones are not identical products, unlike gas. They have some identical functions (calling, texting), but a lot of consumers are not sure what the differences in specifications between phones means. This makes it possible for Apple to overprice their Iphone by making it shiny and very sleek and slender. To the average consumer who doesn't know much about hardware, this wins them over.

So yeah, Apple may be profit hogs. But it's probably fairer to compare them to another successful hardware company than an oil company who operates under a different set of rules.
post #66 of 73
The 16GB is a great deal considering i'm keeping my contract for a long time anyway. Only an $11 difference.
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post #67 of 73
Sure doesn't feel like it. My iPhone 4s is the most elegant thing I own.
post #68 of 73
Quote:
Originally Posted by Jman227 View Post
But this may not be a great comparison to make. BP has a lot of competition from other oil companies. They also sell an identical product. When someone needs to fill up their car they can look at the pricing board and know right away whether it's cheaper than the Shell station a few meters down the road. Therefore, oil companies have to set their prices within the same range as their competitors to maintain sales.

Phones are not identical products, unlike gas. They have some identical functions (calling, texting), but a lot of consumers are not sure what the differences in specifications between phones means. This makes it possible for Apple to overprice their Iphone by making it shiny and very sleek and slender. To the average consumer who doesn't know much about hardware, this wins them over.

So yeah, Apple may be profit hogs. But it's probably fairer to compare them to another successful hardware company than an oil company who operates under a different set of rules.
Or, people actually like the iPhone for its features, and don't buy it just because it's shiny.
post #69 of 73
Quote:
Originally Posted by Biscuits_N_Gravy View Post
Wonder how much it cost to make a $200 pair of Nike Air Jordan shoes...
A cup of rice a day and a stern beating usually does the job.
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post #70 of 73
im not suprised it costs this little to make, and im not suprised to see them mark it up about 500% for retail.

there not the first company to do insane markups for extra profit and they wont be the last
    
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