Apple Iphone 5 cost 199 to make! Sells for 849!

[Tomb]

The worlds largest company and leading cell pone maker beats Samsung in generating profit by a wide margin.

Apple cleverly sells a $200 product and sells it up to 849 dollars without a contract at a record pace! Your telephone provider pays a slightly lower price because they buy in bulk. But the cell phone providers make money over the life time of the cellphone contract.

Do you think Samsung can beat Apple by making less money?

http://www.nbcnews.com/technology/ga...ysts-1B5988132

[NonIndigenous]

What's inclusive in the $200?

It is just how much the materials cost?

Does it include the cheap labour?

Or does it include also the design costs, transport, advertising?

Either way lots of Apple products are rip-offs, that appeal largely to the "glamour image" type of person. The type of person who has £2000 in their bank account, and spends £500 of it on a new phone, whilst earning £250 a week. They type of person that buys it mainly because it is expensive.

[Mitch]

Originally Posted by BDF

What's inclusive in the $200?

It is just how much the materials cost?

Does it include the cheap labour?

Or does it include also the design costs, transport, advertising?

Either way lots of Apple products are rip-offs, that appeal largely to the "glamour image" type of person. The type of person who has £2000 in their bank account, and spends £500 of it on a new phone, whilst earning £250 a week. They type of person that buys it mainly because it is expensive.

It's purely the cost of components, labour is not included. The new iTouch 5 generates a profit of $100 for Apple, however the only difference is the price tag, a cellular transceiver and 3mega pixels in the camera.
I'd imagine that transport is paid at the expense of Apple, considering that shipping is free from their website. I guess they figured that if carriers can make so much money of their product....,then they may as well try too.

[Tomb]

Originally Posted by Mitch

It's purely the cost of components, labour is not included. The new iTouch 5 generates a profit of $100 for Apple, however the only difference is the price tag, a cellular transceiver and 3mega pixels in the camera.
I'd imagine that transport is paid at the expense of Apple, considering that shipping is free from their website. I guess they figured that if carriers can make so much money of their product....,then they may as well try too.

the labour is estimated to be 8 dollars. the 2 cameras cost 18 dollars. the 4g wireless connection cost 34 the screen cost 44 dollars.

http://www.nbcnews.com/technology/ga...ysts-1B5988132

Apple is a smart company. that is good at making alot of money

[CorrieUSMC]

Welcome to Apple. The Most over priced crap ever. You buy a logo. I have had Imacs and PCs. Droids and a Iphone. You buy a phone with a logo on it. As long as all the "fan boys" keeps buying into it, they'll make even more over priced crap. Who knows Iphone 6 - 1100?

[NonIndigenous]

I'm just pissed off at the "I must have everything best" culture. In general. Not just at I-Phones. I read headlines recently in UK Yahoo that there is huge pressure on parents to buy their kids new I-Pads to school. Every kid wants one. It's fucking dumb. I think schools should ban all of this shit everywhere, and allow kids to keep some sort of cheap mobile on them to contact parents. It would lower crime (theft from students & muggings), lower bullying, lower costs to parents, and fix a lot of problems in the Western culture from the roots (aka how kids are brought up). This is a different issue though.

[Vergil]

why act so surprised I'm sure this same thing has been happening for most likely forever. Apple is just the new one to jump on the bandwagon.

btw BDF that idea you have wouldn't do much of anything. Theft would still be there. As with muggings. If it did lower bulling it wouldn't be by much. And its the parents fault for spending the money on the kids. If the parents put there foot down on there kids it wouldn't be a problem.

But as I was saying Apple wasn't the first to do this. And won't be the last either. But I have to say they have some of the best marketing minds around. lol

[NonIndigenous]

Originally Posted by Cajun

btw BDF that idea you have wouldn't do much of anything. Theft would still be there. As with muggings. If it did lower bulling it wouldn't be by much. And its the parents fault for spending the money on the kids. If the parents put there foot down on there kids it wouldn't be a problem.

When I say muggings, I mean outsiders mugging school kids, not school kids vs. school kids. It would happen a lot in my area. What's the motivation to do this if school kids aren't carrying around $1000 of equipment on them (or more)?

You're right. Bullying will always exist, although it exists because of differences. Stopping the bullshit with every kid wanting to have the best will eliminate a stupid difference that's very easy to eliminate. There's plenty of other things to pick on though.

And parents are people. I mean... what can I say. They're adults, you can't really tell them what to do. Some might listen, most won't. I think it's a government's job to fix these sorts of problems.

[NevermindMe]

In other news, the Mona Lisa was painted on $5 of canvas, with $5 of paint.

Shit is worth the price we put on it. At it's core, both things are basically useless. They are marked up because we're willing to pay more for it. It's simple business.

CorrieUSMC: Or the fact that Apple products are easy to figure out, have great application support, streamlined menu controls, easy to personalize settings, loads of apps, good tech support, and good specialty software support. :P

Both Mac's and PC's/Apple and Samsung have their advantages and disadvantages. Let's not pretend we're somehow "enlightened" and everyone else is simply a moron.

- Justin

[NonIndigenous]

Originally Posted by JKmadu619

In other news, the Mona Lisa was painted on $5 of canvas, with $5 of paint. *GASP*

SOURCE!!!???



















(lol)

[NevermindMe]

Really though, you aren't even accounting for the assembly, marketing, transportation, handling, environmental fees, research and development costs, profit margin, store mark-up, factory maintenance, etc.

The headphones and charger costs aren't even included in that $200, and I'd estimate both together are a $50-$100 value.

We're making assumptions based on a wild guess by two people. The link itself says "take this with a grain of salt."

- Justin

[Jesus Christ.]

Originally Posted by JKmadu619

Really though, you aren't even accounting for the assembly, marketing, transportation, handling, environmental fees, research and development costs, profit margin, store mark-up, factory maintenance, etc.

The headphones and charger costs aren't even included in that $200, and I'd estimate both together are a $50-$100 value.

We're making assumptions based on a wild guess by two people. The link itself says "take this with a grain of salt."

- Justin

There was no research into improving the iPhone, there hasn't been since the first one, unless purposefully leaving useful features out so that people buy the next one counts as research >.> Plus they get other people, like Samsung, to develop their shit for them >.>

But yeah, in the end an iPhone really is just over priced shit.

[Vergil]

Originally Posted by BDF

When I say muggings, I mean outsiders mugging school kids, not school kids vs. school kids. It would happen a lot in my area. What's the motivation to do this if school kids aren't carrying around $1000 of equipment on them (or more)?

You're right. Bullying will always exist, although it exists because of differences. Stopping the bullshit with every kid wanting to have the best will eliminate a stupid difference that's very easy to eliminate. There's plenty of other things to pick on though.

And parents are people. I mean... what can I say. They're adults, you can't really tell them what to do. Some might listen, most won't. I think it's a government's job to fix these sorts of problems.

Then to stop muggings we should make everyone dress the same aswell. They get targeted because they dress nicer so people may think they have expensive stuff.

News flash governments are made of people. whom will make the same mistake. But using that logic just let the government take care of the kids. The parents are just there to make the child and after there birth they are taken to be raised in a government agency.

But its also human nature to want the best stuff. So you are going to have to rewire human nature. Honestly I'll want to see that happen.

[NevermindMe]

Boobies: Yeah, God damn Apple, right to hell. We're smarter than the "majority". Bunch of sheep flock to a product, but at least we know quality. :/

Again, most products are worth nearly nothing in raw materials. The $100 bill in your wallet is worth 60 cents in paper and ink. As I pointed out, all famous art selling for billions of dollars was composed on paint and canvas worth a child's allowance. The human body, in sheer components is composed of ingredients you have in your kitchen, right now. Putting a value on anything based on component cost (especially when that cost is simply an estimate. Read the article) is so shockingly narrow-minded.

I have a Samsung phone, I'm in no way an Apple fan-boy. But their products are amazingly impressive, and industry leading. However their prices are quite inflated, and are out of many people's price range. They also have poor gaming support. However Apple computers are the best for anything to do with making music, or musical editing as they all have pre-installed software worth roughly $400-$600 for such a purpose. I could spew facts all day. What it comes down to is that Macs and PCs have totally different uses, and are comparing Apples to Oranges. They are both fruit, but are totally different.

- Justin

[NonIndigenous]

Originally Posted by Cajun

Then to stop muggings we should make everyone dress the same aswell. They get targeted because they dress nicer so people may think they have expensive stuff.

News flash governments are made of people. whom will make the same mistake. But using that logic just let the government take care of the kids. The parents are just there to make the child and after there birth they are taken to be raised in a government agency.

But its also human nature to want the best stuff. So you are going to have to rewire human nature. Honestly I'll want to see that happen.

It's also inherent in human nature, given that we are simply apes further down the evolution timeline, to act on impulse and knock each other out when we don't like something about someone else.

Sure, there are people who do that. They're called assholes.

What are you trying to say? I'm saying an effort should be made by everyone to draw kids away from worshipping the consumer culture. There was a survey done in the UK a few months ago proving that something like 8/10 ten year olds in London thought I-Pods were a "basic essential", same as water, food etc. Wtf are people raising?

A central government is in a better position to change something like this because they hold the power to do so. A single parent can decide not to buy their kids this crap, but nothing will change if all the other parents still do. I thought something like this is obvious, although obviously not to some...

And also, in the UK, school kids DO in fact dress all the same. School uniforms. I hated them when I first moved to the UK, but now I see the sense in it, although I see it slightly differently from most people but nevermind.

[Jesus Christ.]

Originally Posted by JKmadu619

Boobies: Yeah, God damn Apple, right to hell. We're smarter than the "majority". Bunch of sheep flock to a product, but at least we know quality. :/

Again, most products are worth nearly nothing in raw materials. The $100 bill in your wallet is worth 60 cents in paper and ink. As I pointed out, all famous art selling for billions of dollars was composed on paint and canvas worth a child's allowance. The human body, in sheer components is composed of ingredients you have in your kitchen, right now. Putting a value on anything based on component cost (especially when that cost is simply an estimate. Read the article) is so shockingly narrow-minded.

I have a Samsung phone, I'm in no way an Apple fan-boy. But their products are amazingly impressive, and industry leading. However their prices are quite inflated, and are out of many people's price range. They also have poor gaming support. However Apple computers are the best for anything to do with making music, or musical editing as they all have pre-installed software worth roughly $400-$600 for such a purpose. I could spew facts all day. What it comes down to is that Macs and PCs have totally different uses, and are comparing Apples to Oranges. They are both fruit, but are totally different.

- Justin

The whole art thing is completely different, iPhones are mass produced crap whereas these famous works of art are one of a kind and tend to be hundreds of years old, and they didn't start off costing that much either, Van Gogh died poor for example.

[dr2005]

In light of the usual distribution model for phones, I would expect the vast majority of iPhone 5s were sold as part of a contract rather than SIM-free for pay-as-you-go purposes (simple reason being, someone for whom PAYG is more viable than contract isn't likely to have $650 to splash out on a phone). As such, the actual average margin per phone is likely to be far lower than the headline figure. It's also worth noting that in addition to the costs already stated, you'll also have import duties as the products are made outside of the United States (doesn't matter if they're Apple or not, they're made by a third party) as well as any local or federal sales taxes and advertising overheads, all of which will reduce the margin Apple makes per phone. The main reasons for Apple's high market value and net worth are (1) it's been saving up cash reserves for decades and (2) it engages in some pretty creative (and legal) tax avoidance schemes using a variety of tax havens. If it were as easy as bumping up the ticket price of their products, every smartphone manufacturer would be doing it.

[NevermindMe]

Boobies: Fine then, art doesn't count. How about if you ate an orange for lunch. The seeds for it were essentially worthless, so in raw materials the orange you paid 75 cents for is zero. Of course, that not accounting for the cost of irrigation, pesticides and general care. Raw material costs mean nothing. Oranges are mass produced crap that start off at 75 times their original value, less than the iPhone 5's 4X mark-up from the cost of raw materials.

It's business, this is nothing new. Literally every industry is gimping you, not just Apple inc.

- Justin

[NonIndigenous]

Originally Posted by dr2005

It's also worth noting that in addition to the costs already stated, you'll also have import duties as the products are made outside of the United States (doesn't matter if they're Apple or not, they're made by a third party) as well as any local or federal sales taxes and advertising overheads, all of which will reduce the margin Apple makes per phone.

I can't figure out whether or not all these sort of items cost SOO much more in the UK than in the US because of corporations taking advantage of a large stupid group of people who are prepared to pay any price to get their hands on an I-Phone, or if it is more because of taxes. The UK is hellbent on taxes. Stupid example: "Pasty tax". I mean, lol. Just lol.

It's obviously both, but which is the larger contributor?

Originally Posted by JKmadu619

It's business, this is nothing new. Literally every industry is gimping you, not just Apple inc.
- Justin

I think the important difference here is that food (such as oranges) is essential. You die without food. You don't die without an I-Phone.

I don't blame Apple anywhere near as much as I blame the stereotypical fool earning minimum wage, or unemployed altogether, who gets himself brand new Apple gimmics as soon as they're released. Why am I so concerned with it? Because people I'm ashamed to say I used to be friends with, or who at least called themselves my friend keep doing it and fucking up the rest of their life because they can't keep up on bills etc. Not to mention when they get older and have kids, they still make the same mistakes. Be it Apple, or a brand new car at £20,000. Same thing actually.

I look after my cash and several times have had idiots who think I'm an idiot try to use me. I'm sick of it. Lending money that you don't ever get back to people that then spit in your face when you remind them a year later. It's funny because most of my family on my mother's side is exactly like this. She admits it. We don't contact or talk to them anymore. All they ever wanted from us is money, and it's true when I think back. What did they do with it? TV satelite subscription, lots of cigarettes, and brand new non-essential gadgets. And never enough. Always bitching that they didn't have what we do.

I'm getting carried away. It's a rant. Point made though.

[NevermindMe]

BDF: I realize that, people get quite obsessive over this shit. However, that's a personal reason to hate a company. Apple doesn't put cocaine in their devices, it's not like the person CANNOT stop. They just have really shitty money management skills.

As I said, instead of eating the orange that's marked up, you could just scavenge for food all day. Or maybe buy some kind of berries, as they're cheaper alternatives. The point is, all industry is modeled the exact same way. Profit, be definition means that you are being "cheated" out of money.

The other point I have is that this cost is not only just in raw materials for the iPhone, but it's simply a guess. The source itself tells us there is no logic behind this number.

As I said again, the human body is worth next to nothing in raw material, and the money you use everyday is worthless as a component. The 25 cent pen you write notes with is worth considerably less in components as well. The point is, yes Apple is marking up their products quite a bit. But they aren't the anti-christ because every other product you use in your everyday life is doing the same thing.

- Justin

Apple has just gotten cocky now, and there is really no reason why they shouldn't. It's not a crime to maximize a profit based on popular demand, although I think it's dumb to spend that much money on it right now just because people want to have the newest toy in the shop. Come people, it's a phone; it shouldn't cost as much as some laptops. I mean, they just came out with iPhone 4S a year ago. Do people really think it's changed all that much? What's the real difference; they fit a little more space on it and made it 0.0000478251 seconds faster? That's not amazing; it's certainly no reason to discard a perfectly good 4S.

However, I have to admit; I am a much bigger fan of the iPhone than the Galaxy SIII. Samsung phones, and really android technology, is a more frustrating interface for me. I like the straight-forwardness of the iPhone.