$188 is How Much the iPhone 4 Hardware is Worth

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insider3

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You aren't getting what you pay for when you are on a crappy network that wants $2500 for the next two years. Besides, the iPhone4 unlocked is around $600 if I'm correct. So that's around a $400 profit....getting what you pay for my ass.
 

jitpublisher

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Okay, here we go again. They are not making $400 profit. Do you see the little words at the bottom of the article? This accounts for only the HARDWARE or MATERIAL cost to build the thing. These articles do not account for LOH (labor and overhead)Which accounts for pretty much everything else required to get this product to market after you buy the parts. Labor and overhead most usually runs at a much higher percentage of the product cost than the materials. But unless you are in the manufacturing business, you probably don't think about or realize just how big those costs are.
 

wotan31

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@insider3 you couldn't be more wrong. Apple is absolutely NOT making $400 profit on each phone. "Worth" and "Cost" are two very different things. The iPhone *costs* $188 in parts, to manufacture. That does not include the cost of labor to build the phones. That does not include all the research and development to design the thing. That does not include the cost of software development to design the software that it runs. That does not include the cost of marketing to advertise the thing. That does not include the cost of running a retail sales operation (i.e. Apple Store) to sell the thing. That does not include the cost of all the regulatory testing and approval to sell the thing in each country where its sold. I don't even like the iPhone 4, but please, you have absolutely no concept of cost and profits.
 

angryfingertips

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Also this is a an "estimated cost" of materials. They might be cheaper or more, since this is just a best guess. Most of the time we think the Chinese work for free, but in reality they don't and they do get paid. Microsoft charges 160 or so for a copy of Windows 7 disc that is made in Mexico. Cost of the disc is what 1 or 2 cents. We seen to forget the other overhead when someone makes something. And yes, Apple is in this to make money and as much as they can. As long as people are willing to pay it, the price will hold firm.
 

footsoldier

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[citation][nom]angryfingertips[/nom]Also this is a an "estimated cost" of materials. They might be cheaper or more, since this is just a best guess. Most of the time we think the Chinese work for free, but in reality they don't and they do get paid. Microsoft charges 160 or so for a copy of Windows 7 disc that is made in Mexico. Cost of the disc is what 1 or 2 cents. We seen to forget the other overhead when someone makes something. And yes, Apple is in this to make money and as much as they can. As long as people are willing to pay it, the price will hold firm.[/citation]

Agreed. People tend to forget Microsoft charges more crazily for their software.
 

Clintonio

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[citation][nom]wotan31[/nom]@insider3 you couldn't be more wrong. Apple is absolutely NOT making $400 profit on each phone. "Worth" and "Cost" are two very different things. The iPhone *costs* $188 in parts, to manufacture. That does not include the cost of child labor to build the phones. That does not include all the research and development to design the thing. That does not include the cost of software development to design the software that it runs. That does not include the cost of marketing to advertise the thing. That does not include the cost of running a retail sales operation (i.e. Apple Store) to sell the thing. That does not include the cost of all the regulatory testing and approval to sell the thing in each country where its sold. I don't even like the iPhone 4, but please, you have absolutely no concept of cost and profits.[/citation]

Fixed.


Also, the real rip off is the contract price. You end up paying far more than you would if it was unlocked and new. As for R&D, it'll cost a fortune, but I guarantee you're still being overcharged.
 

Pei-chen

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I wonder how much "phone" people are getting when they sign a 2 year contract and paid $200 for their Android phone. All Android devices so far are kinda cheap with off-the-shelf components and plastic parts.
 

angryfingertips

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[citation][nom]Pei-chen[/nom]I wonder how much "phone" people are getting when they sign a 2 year contract and paid $200 for their Android phone. All Android devices so far are kinda cheap with off-the-shelf components and plastic parts.[/citation]

Droid Incredible cost breakdown was 187.75 for the materials. I don't have a smart phone like one of these, so I cant really talk about which one would have more quality parts.
 

Pei-chen

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[citation][nom]jimslaid2[/nom]Why do so many people dislike the iPhone on this site?[/citation]
Anandtech is for regular/mainstream gamers. Tom's is finding its niche in AMD/ATI and anti-Apple people.

The quality of articles and speed of news pretty much reflects this. Engadget + Anandtech pretty much provides 5 times the review and sneak peek you get at Tom's with less spelling mistake. In fact, Tom’s “news” is exactly one day late than Engadget.
 

Pei-chen

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[citation][nom]angryfingertips[/nom]Droid Incredible cost breakdown was 187.75 for the materials. I don't have a smart phone like one of these, so I cant really talk about which one would have more quality parts.[/citation]
Good to know. I guess the AMOLED on the Incredible cost about the same as iPhone's IPS display.
 

Ezence

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i have to say i like seeing the brakedown of price for all the parts in the phone. Should happen more often imo :D
 

tank

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Wow enough of the anti-apple comments. This site completely blew the reception issue out of the water, with bad journalism. Some gent was nice enough to show a accurate article will actual readout of reception. That is good journalism.

@pei-chen
thanks for a different place to get my news. I am sick and tired of this biased, half talent reporting.

@tomshardware
This is me signing off for a different site. Too many times their isn't real news here, just a bunch of immature people arguing about things that have nothing to do with news.

If smells like crap, looks like crap, and it feels like crap..... what is it..... you get the point. On to better journalism.
 
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