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Mitch Offline
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Name: Mitchell
Age: 27
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Location: Australia

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Re: Apple Iphone 5 cost 199 to make! Sells for 849! - September 22nd 2012, 02:28 PM

Quote:
Originally Posted by BDF View Post
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.