Overclock.net › Forums › Industry News › Hardware News › [Seattle Times] Cost of building the iPhone
New Posts  All Forums:Forum Nav:

[Seattle Times] Cost of building the iPhone

post #1 of 12
Thread Starter 
Interesting read - it costs $173 to make an iPhone. While it will cost the consumer, $200 to buy one, this article says that AT&T will be subsidizing the cost by paying $300-$350 to Apple per iPhone. How's that for a tidy profit?

http://seattletimes.nwsource.com/htm..._iphone25.html

'Course I'm sure their marketing buget is insane...
     
CPUMotherboardGraphicsRAM
Q9450 @ 3.0 Gigabyte GA-P45-UD3P Evga 9800GTX+ 800/1943/1200 2x2GB OCZ 1066 LV 
Hard DriveOptical DriveOSMonitor
Vertex 2 40gb + 750gb Seagate 7200.10 Lite-On 24x DVD+-RW Windows 7 x64 LG 22" 1680x1050 
PowerCase
Corsair HX520w modular Coolermaster CM-690 
CPUMotherboardRAMHard Drive
Sempron LE-1250 Gigabyte GA-MA78GPM-DS2H 2GB (2x1GB) Corsair Ballistix 1066 2x750GB Western Digital RE2 Green power 
OSPowerCase
Windows Home Server w/ PP3 Ultra 400w modular Antec 300 
  hide details  
Reply
     
CPUMotherboardGraphicsRAM
Q9450 @ 3.0 Gigabyte GA-P45-UD3P Evga 9800GTX+ 800/1943/1200 2x2GB OCZ 1066 LV 
Hard DriveOptical DriveOSMonitor
Vertex 2 40gb + 750gb Seagate 7200.10 Lite-On 24x DVD+-RW Windows 7 x64 LG 22" 1680x1050 
PowerCase
Corsair HX520w modular Coolermaster CM-690 
CPUMotherboardRAMHard Drive
Sempron LE-1250 Gigabyte GA-MA78GPM-DS2H 2GB (2x1GB) Corsair Ballistix 1066 2x750GB Western Digital RE2 Green power 
OSPowerCase
Windows Home Server w/ PP3 Ultra 400w modular Antec 300 
  hide details  
Reply
post #2 of 12
now remember back when the iphone cost 600, that was a profit.
Bravo
(13 items)
 
  
CPUMotherboardGraphicsRAM
X4 955 @ 3.6 Asus M479T 4870 1GB 8 GB DDR3 
Hard DriveOSPowerCase
160 GB Win 7 Antec 750w Antec 300 
  hide details  
Reply
Bravo
(13 items)
 
  
CPUMotherboardGraphicsRAM
X4 955 @ 3.6 Asus M479T 4870 1GB 8 GB DDR3 
Hard DriveOSPowerCase
160 GB Win 7 Antec 750w Antec 300 
  hide details  
Reply
post #3 of 12
Of course because everyone knows that R&D is completely free!
    
CPUMotherboardGraphicsRAM
i7 920 Asus P6T 6990 + 6450 + 5870 18GB Corsair xms3 ddr3 1600 
Hard DriveOptical DriveCoolingOS
5TB + 240GB Intel 335 series ssd 24x DVD drive Water cooled inside of a volcano  Windows 7 
MonitorPowerCaseMouse
32 inch dynex + 20 inch HP + 2x 20 inch dells +... 2x 750 watt corsairs The body of a dead clown. a literal mouse 
Mouse Pad
a really cool place where my mouse likes to chill 
  hide details  
Reply
    
CPUMotherboardGraphicsRAM
i7 920 Asus P6T 6990 + 6450 + 5870 18GB Corsair xms3 ddr3 1600 
Hard DriveOptical DriveCoolingOS
5TB + 240GB Intel 335 series ssd 24x DVD drive Water cooled inside of a volcano  Windows 7 
MonitorPowerCaseMouse
32 inch dynex + 20 inch HP + 2x 20 inch dells +... 2x 750 watt corsairs The body of a dead clown. a literal mouse 
Mouse Pad
a really cool place where my mouse likes to chill 
  hide details  
Reply
post #4 of 12
true, but look how much it cost to make a ps3 and xbox360 compared to how much they sell for. microsoft and sony are both losing money on every system sold.
Bravo
(13 items)
 
  
CPUMotherboardGraphicsRAM
X4 955 @ 3.6 Asus M479T 4870 1GB 8 GB DDR3 
Hard DriveOSPowerCase
160 GB Win 7 Antec 750w Antec 300 
  hide details  
Reply
Bravo
(13 items)
 
  
CPUMotherboardGraphicsRAM
X4 955 @ 3.6 Asus M479T 4870 1GB 8 GB DDR3 
Hard DriveOSPowerCase
160 GB Win 7 Antec 750w Antec 300 
  hide details  
Reply
post #5 of 12
Thread Starter 
Quote:
Originally Posted by Tr1ggrhappym0nk View Post
Of course because everyone knows that R&D is completely free!
Let's guess that R&D cost $10,000,000. As of January 2008, 4 million iPhones have been sold.

10,000,000 / 4,000,000 = 2.5

That means by selling 4 million units, their profit needs to be $2.50 in order to break even.

If 4 million units are sold with a $300 markup from cost, that gives $1,200,000,000

Feel free to check my math and logic. I have an English degree for a reason.

Dayum...
     
CPUMotherboardGraphicsRAM
Q9450 @ 3.0 Gigabyte GA-P45-UD3P Evga 9800GTX+ 800/1943/1200 2x2GB OCZ 1066 LV 
Hard DriveOptical DriveOSMonitor
Vertex 2 40gb + 750gb Seagate 7200.10 Lite-On 24x DVD+-RW Windows 7 x64 LG 22" 1680x1050 
PowerCase
Corsair HX520w modular Coolermaster CM-690 
CPUMotherboardRAMHard Drive
Sempron LE-1250 Gigabyte GA-MA78GPM-DS2H 2GB (2x1GB) Corsair Ballistix 1066 2x750GB Western Digital RE2 Green power 
OSPowerCase
Windows Home Server w/ PP3 Ultra 400w modular Antec 300 
  hide details  
Reply
     
CPUMotherboardGraphicsRAM
Q9450 @ 3.0 Gigabyte GA-P45-UD3P Evga 9800GTX+ 800/1943/1200 2x2GB OCZ 1066 LV 
Hard DriveOptical DriveOSMonitor
Vertex 2 40gb + 750gb Seagate 7200.10 Lite-On 24x DVD+-RW Windows 7 x64 LG 22" 1680x1050 
PowerCase
Corsair HX520w modular Coolermaster CM-690 
CPUMotherboardRAMHard Drive
Sempron LE-1250 Gigabyte GA-MA78GPM-DS2H 2GB (2x1GB) Corsair Ballistix 1066 2x750GB Western Digital RE2 Green power 
OSPowerCase
Windows Home Server w/ PP3 Ultra 400w modular Antec 300 
  hide details  
Reply
post #6 of 12
the money comes from calls u make not from the Iphone cost.
similar to Printers and Ink Cartridges..
PS3 and games/blueray movies
etc..
Main PC
(13 items)
 
  
CPUMotherboardGraphicsRAM
Core i5 2500k @ 5Ghz ASRock Extreme4 Gen3 EVGA GTX 580 8GB 
Hard DriveOSMonitorPower
Intel 510 SSD ; 2x2TB WD RE4 W7 x64 Samsung BX2450 Corsair AX850 
Case
Corsair 800D 
  hide details  
Reply
Main PC
(13 items)
 
  
CPUMotherboardGraphicsRAM
Core i5 2500k @ 5Ghz ASRock Extreme4 Gen3 EVGA GTX 580 8GB 
Hard DriveOSMonitorPower
Intel 510 SSD ; 2x2TB WD RE4 W7 x64 Samsung BX2450 Corsair AX850 
Case
Corsair 800D 
  hide details  
Reply
post #7 of 12
@e_dogg - Lol, nice one hehe
Etch-a-Sketch
(16 items)
 
  
CPUMotherboardGraphicsRAM
Intel Core i7 3930K Gigabyte GA-X79S-UP5 2x MSI R5850 OC 1.350V/1060/1260 in CrossFireX 64GB Corsair Dominator 1866MHz, 9-10-9-27-180-1T 
Hard DriveCoolingMonitorKeyboard
2x Corsair Force 120GB GT SSD in RAID-0, 2x WD ... EK Supreme HF (EN), HW Labs BI GTX480, HW Labs ... Samsung S27A850 Logitech G19 Gaming Keyboard 
PowerCaseMouseAudio
Corsair Professional Series Gold CMPSU-1200AX Antec 1200 Gamer Case, Custom Full-window Side ... Logitech G9 Laser Mouse Auzentech X-Fi Forte 
Other
Bigfoot Networks Killer Xeno Pro 
  hide details  
Reply
Etch-a-Sketch
(16 items)
 
  
CPUMotherboardGraphicsRAM
Intel Core i7 3930K Gigabyte GA-X79S-UP5 2x MSI R5850 OC 1.350V/1060/1260 in CrossFireX 64GB Corsair Dominator 1866MHz, 9-10-9-27-180-1T 
Hard DriveCoolingMonitorKeyboard
2x Corsair Force 120GB GT SSD in RAID-0, 2x WD ... EK Supreme HF (EN), HW Labs BI GTX480, HW Labs ... Samsung S27A850 Logitech G19 Gaming Keyboard 
PowerCaseMouseAudio
Corsair Professional Series Gold CMPSU-1200AX Antec 1200 Gamer Case, Custom Full-window Side ... Logitech G9 Laser Mouse Auzentech X-Fi Forte 
Other
Bigfoot Networks Killer Xeno Pro 
  hide details  
Reply
post #8 of 12
Quote:
Originally Posted by e_dogg View Post
Let's guess that R&D cost $10,000,000. As of January 2008, 4 million iPhones have been sold.

10,000,000 / 4,000,000 = 2.5

That means by selling 4 million units, their profit needs to be $2.50 in order to break even.

If 4 million units are sold with a $300 markup from cost, that gives $1,200,000,000

Feel free to check my math and logic. I have an English degree for a reason.

Dayum...

Your logic and matha re both correct however multiply the R&D by alot. Take for example the PS3 R&D was in the billions. I think almost 2.
Darkness
(18 items)
 
  
CPUMotherboardGraphicsRAM
4690k asus z97-ar gigabyte 980 ti g1 gaming G-Skill Ripjaw 
Hard DriveHard DriveOSMonitor
WD Black Samsung EVO 840 Windows 8 Pro 64Bit Ultrasharp 27" 
MonitorKeyboardPowerCase
HP W2338H 23" Black Widow Ultimate Corsair HK1000W Corsair 600T SE 
MouseMouse PadAudioAudio
Zowie EC2 Zowie (Pure exellence) dt880 sound blaster recon3d 
Audio
swan m10 
  hide details  
Reply
Darkness
(18 items)
 
  
CPUMotherboardGraphicsRAM
4690k asus z97-ar gigabyte 980 ti g1 gaming G-Skill Ripjaw 
Hard DriveHard DriveOSMonitor
WD Black Samsung EVO 840 Windows 8 Pro 64Bit Ultrasharp 27" 
MonitorKeyboardPowerCase
HP W2338H 23" Black Widow Ultimate Corsair HK1000W Corsair 600T SE 
MouseMouse PadAudioAudio
Zowie EC2 Zowie (Pure exellence) dt880 sound blaster recon3d 
Audio
swan m10 
  hide details  
Reply
post #9 of 12
Quote:
Originally Posted by NirXY View Post
the money comes from calls u make not from the Iphone cost.
similar to Printers and Ink Cartridges..
PS3 and games/blueray movies
etc..
for apple the money doesnt come from calls they make it comes directly from the hardware sales. IN the past they had revenue sharing which ment they got a portion of the monthly fee but no more so they rely soley on hardware sales.


sorry for double post
Darkness
(18 items)
 
  
CPUMotherboardGraphicsRAM
4690k asus z97-ar gigabyte 980 ti g1 gaming G-Skill Ripjaw 
Hard DriveHard DriveOSMonitor
WD Black Samsung EVO 840 Windows 8 Pro 64Bit Ultrasharp 27" 
MonitorKeyboardPowerCase
HP W2338H 23" Black Widow Ultimate Corsair HK1000W Corsair 600T SE 
MouseMouse PadAudioAudio
Zowie EC2 Zowie (Pure exellence) dt880 sound blaster recon3d 
Audio
swan m10 
  hide details  
Reply
Darkness
(18 items)
 
  
CPUMotherboardGraphicsRAM
4690k asus z97-ar gigabyte 980 ti g1 gaming G-Skill Ripjaw 
Hard DriveHard DriveOSMonitor
WD Black Samsung EVO 840 Windows 8 Pro 64Bit Ultrasharp 27" 
MonitorKeyboardPowerCase
HP W2338H 23" Black Widow Ultimate Corsair HK1000W Corsair 600T SE 
MouseMouse PadAudioAudio
Zowie EC2 Zowie (Pure exellence) dt880 sound blaster recon3d 
Audio
swan m10 
  hide details  
Reply
post #10 of 12
Well... can't say they didn't do a good job.
Lee XT
(17 items)
 
  
CPUMotherboardGraphicsRAM
AMD FX-6300 Asus M5A97 SAPPHIRE Radeon HD 7850 AMD 4GB DDR3 1333MHZ 
RAMRAMRAMHard Drive
AMD 4GB DDR3 1333MHZ AMD 4GB DDR3 1333MHZ AMD 4GB DDR3 1333MHZ OCZ Vertex 4 256GB 
CoolingOSMonitorKeyboard
Corsair H80 Windows 8.1 Pro MCE Dell P2414H WHXV7  Microsoft Generic 
PowerCaseMouseMouse Pad
Ultra 600W Limited Edition NZXT Black Steel Razer Deathadder Razer Goliath 
Audio
Realtek HD Audio 
  hide details  
Reply
Lee XT
(17 items)
 
  
CPUMotherboardGraphicsRAM
AMD FX-6300 Asus M5A97 SAPPHIRE Radeon HD 7850 AMD 4GB DDR3 1333MHZ 
RAMRAMRAMHard Drive
AMD 4GB DDR3 1333MHZ AMD 4GB DDR3 1333MHZ AMD 4GB DDR3 1333MHZ OCZ Vertex 4 256GB 
CoolingOSMonitorKeyboard
Corsair H80 Windows 8.1 Pro MCE Dell P2414H WHXV7  Microsoft Generic 
PowerCaseMouseMouse Pad
Ultra 600W Limited Edition NZXT Black Steel Razer Deathadder Razer Goliath 
Audio
Realtek HD Audio 
  hide details  
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Hardware News
Overclock.net › Forums › Industry News › Hardware News › [Seattle Times] Cost of building the iPhone