It costs $172.46 to make a 16GB 3Gs

[ViviTheMage]

http://www.dailytech.com/article.aspx?newsid=15528

crazy, they even have a list of cost per component.

 

[sjwaste]

That is awesome.

I really admire the business model. They're making $400 a unit and still can't keep the shelves stocked!

EDIT: After reading the actual article, it seems that is just the bill of materials and manufacturing cost. It doesn't take into account initial R&D, software, cost of rejects/rework, etc. Those might eat up half the margin, but even $200 a unit is still very good.

 

[Kmax82]

Yea. That is amazing profit margins.

 

[ChAoTiCpInOy]

That's Apple.

 

[torpid]

How much are the push notification servers costing them, I wonder?

 

[alm99]

Originally posted by: sjwaste
It doesn't take into account initial R&D, software, cost of rejects/rework, etc. Those might eat up half the margin, but even $200 a unit is still very good.

Exactly, people read those articles and think they Apple is price gouging and should lower their prices, but they forget about this.

 

[Ns1]

Originally posted by: alm99

Originally posted by: sjwaste
It doesn't take into account initial R&D, software, cost of rejects/rework, etc. Those might eat up half the margin, but even $200 a unit is still very good.

Exactly, people read those articles and think they Apple is price gouging and should lower their prices, but they forget about this.

And let's not forget the 90834590348508 in advertising

 

[sjwaste]

Even if they made $400 a unit, I wouldn't think they should lower their price. If nobody else wants to or can compete, why should they? I know that if it were my business, I'd take what the market would bear for my products. If anything, Apple should be increasing prices now until demand for the GS can be met.

 

[KeypoX]

Originally posted by: Ns1

Originally posted by: alm99

Originally posted by: sjwaste
It doesn't take into account initial R&D, software, cost of rejects/rework, etc. Those might eat up half the margin, but even $200 a unit is still very good.

Exactly, people read those articles and think they Apple is price gouging and should lower their prices, but they forget about this.

And let's not forget the 90834590348508 in advertising

All those sunk costs have been spread out over millions and are virtually 0, or should be taken as zero. The manufacturing cost however probably adds a bit, but not much since they are made in china.

The price seems fair though, I would buy one if it wasnt for ATT. I may still get one and unlock when that comes out.

 

[ChAoTiCpInOy]

They don't need to lower prices. People are still buying at the prices they have set now. They have pretty much saturated the market for the people that would buy an iPhone at the 200 and 300 dollar price points, which is why they are putting an iPhone at the 100 price point to open it up to the people who have not bought an iPhone yet.

 

[ViviTheMage]

Originally posted by: torpid
How much are the push notification servers costing them, I wonder?

They get money from sales of Apps..so this wouldn't effect it, imo.

 

[ric1287]

Originally posted by: ViviTheMage

Originally posted by: torpid
How much are the push notification servers costing them, I wonder?

They get money from sales of Apps..so this wouldn't effect it, imo.

not from the free apps

 

[umrigar]

"That incredible profit margin may be cut into a bit by the aforementioned expenses of transportation, R&D, advertising, and other costs"

You cannot simply say R&D and advertising are ZERO, as much as you'd like to think it. Yes, Apple gets tons of free press, but they pay for a lot of it too.

How much you think the best engineers get paid to develop the hardware & make it work?

 

[JackBurton]

You think that's bad? Have you seen how much Microsoft overcharges for their OS? It only cost them $0.25 for the DVD, and they are charging $315 for Windows 7! :roll:

 

[TheStu]

Originally posted by: JackBurton
You think that's bad? Have you seen how much Microsoft overcharges for their OS? It only cost them $0.25 for the DVD, and they are charging $315 for Windows 7! :roll:

Yea, cuz you know, the OS was given to them for free by leprechauns!

 

[smokozuna]

And they are worth every penny, I love my 3G!

 

[JackBurton]

Originally posted by: TheStu

Originally posted by: JackBurton
You think that's bad? Have you seen how much Microsoft overcharges for their OS? It only cost them $0.25 for the DVD, and they are charging $315 for Windows 7! :roll:

Yea, cuz you know, the OS was given to them for free by leprechauns!

Exactly. Microsoft is making $314.75 profit per Windows 7 disc because they are employing leprechauns. And I suspect Apple is doing the same thing with their 3Gs phones. Somehow the phone was researched, designed, tested, manufactured, marketed, and the software was written all for free. Amazing! And God forbid Apple try to make a profit. That's crazy talk. They should only be allowed to make $0.25 profit per phone.

 

[Rottie]

Originally posted by: torpid
How much are the push notification servers costing them, I wonder?

Dont tell Apple to give up push notification if it costs them too much.

 

[Rottie]

Originally posted by: JackBurton
You think that's bad? Have you seen how much Microsoft overcharges for their OS? It only cost them $0.25 for the DVD, and they are charging $315 for Windows 7! :roll:

Steve Jobs is just like Billy Gates. Enuff said.

 

[Rottie]

If you feel iPhone costs too much then why not go with iPod Touch they are cheaper than iPhone.

 

[TheStu]

Originally posted by: Rottie
If you feel iPhone costs too much then why not go with iPod Touch they are cheaper than iPhone.

What if I want to make a phone call?

The market has spoken, enough people think that the iPhone is reasonably priced and are buying it. 1 Million sold in 3 days, I think that Apple is pricing them just fine.

And lest we forget, they are a company out to make a profit, just like every other company.

 

[Muadib]

Originally posted by: JackBurton
You think that's bad? Have you seen how much Microsoft overcharges for their OS? It only cost them $0.25 for the DVD, and they are charging $315 for Windows 7! :roll:

They must feel guilty then.

 

[JackBurton]

Originally posted by: Rottie

Originally posted by: JackBurton
You think that's bad? Have you seen how much Microsoft overcharges for their OS? It only cost them $0.25 for the DVD, and they are charging $315 for Windows 7! :roll:

Steve Jobs is just like Billy Gates. Enuff said.

Businessmen?

 

[JackBurton]

Originally posted by: Muadib

Originally posted by: JackBurton
You think that's bad? Have you seen how much Microsoft overcharges for their OS? It only cost them $0.25 for the DVD, and they are charging $315 for Windows 7! :roll:

They must feel guilty then.

Yeah, but you won't have the ULTIMATE Windows 7 experience with those cheap things.

 

[Muadib]

Originally posted by: JackBurton

Originally posted by: Muadib

Originally posted by: JackBurton
You think that's bad? Have you seen how much Microsoft overcharges for their OS? It only cost them $0.25 for the DVD, and they are charging $315 for Windows 7! :roll:

They must feel guilty then.

Yeah, but you won't have the ULTIMATE Windows 7 experience with those cheap things.

I have to admit, I'm miffed by that. I bought Vista Ultimate, and feel they should throw me a bone too.