$188 is How Much the iPhone 4 Hardware is Worth

[mauller07]

I think a lot of people also forget about is the development and advertisement costs they throw into a products price plus that bit for profit on top, but with apples history of selling you a pc for 8 grand that's only built with 1.5 grand in parts then its not really forgivable especially when they don't even innovate in terms of hardware, especially when the iphone 4 does not even work properly. (cant call the ipad an innovation its just a glorified iphone without calling functions)

 

[phatboe]

@tank if you think there isn't Apple bashing going on other sites like Anandtech you are in for a rude awakening, LOL. The feeling toward Apple on the forums/user comment sections is the same on most the tech sites I've seen recently.

 

[ksampanna]

[citation][nom]Jerky_san[/nom]And yet they are to cheap to give out a 50 cent rubber case they got made in china.. amazing..[/citation]

I wonder the same thing.

 

[Pyroflea]

People always forget to take into account that Apple purchases thousands of components at ocne, and gets them for half what a single component costs.

 

[joebob2000]

[citation][nom]jitpublisher[/nom]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.[/citation]

Divided across the 2 million they already sold, or the 10+ million they will sell before the next device comes along? Considering they are likely grossing more than 300 a unit when they sell them to AT&T, by the time they get to 10 million handsets the profit is going to be terrific. And who knows what kind of per dollar kickback Apple is getting for giving exclusivity to AT&T... Don't worry, they wont be going hungry any time soon.

 

[beayn]

[citation][nom]footsoldier[/nom]Agreed. People tend to forget Microsoft charges more crazily for their software.[/citation]

No one is forgetting how much other companies overcharge us, but this is an Apple article and people are going to talk about Apple here, not MS.

 

[joebob2000]

[citation][nom]Pyroflea[/nom]People always forget to take into account that Apple purchases thousands of components at ocne, and gets them for half what a single component costs.[/citation]
LOL, yes, iSuppli went to their local Radio Shack and took these prices off of the parts on the shelf... Please tell me you're joking.

 

[WarraWarra]

joebob2000

That sounds about right so volume pricing on 100,000 units minm. order would be 30% that cost at most.

Apple sold about 2milj. phones or close to doing that amount that means they get 5 milj. unit pricing = 4.5% of iSuppli pricing for a projected 10 milj. phones to be sold in 6 to 8 months conservatively.

You would think that retard Apple would allow you to democratically own what you bought and use what service provider / pay as you go service in this junk but they are above Democracy / the common small people's version of the law.

Same with software / porn I own my hardware I will put what I want on it when I want or is this opposite of what that lost forgotten article is about the "USA constitution"

Maybe UK people has enough guts / b*lls to get Apple to allow users to do what they want when they want, at least there is still law and justice in UK.

 

[maestintaolius]

[citation][nom]jimslaid2[/nom]Why do so many people dislike the iPhone on this site?[/citation]
Probably for the same reason whenever there's a MS article you get a load MS haters or an Android article you get anti-android folks. People like to puff themselves up big to and talk about how the other side sucks in order to justify their own purchasing decisions and how every one who differs in opinion is wrong and on the losing team. Of course, the whole 'I'm better than you cause I own X and you only own Y' is a stupid argument to begin with.

 

[joebob2000]

[citation][nom]WarraWarra[/nom]That sounds about right so volume pricing on 100,000 units minm. order would be 30% that cost at most.Apple sold about 2milj. phones or close to doing that amount that means they get 5 milj. unit pricing = 4.5% of iSuppli pricing for a projected 10 milj. phones to be sold in 6 to 8 months conservatively.You would think that retard Apple would allow you to democratically own what you bought and use what service provider / pay as you go service in this junk but they are above Democracy / the common small people's version of the law.Same with software / porn I own my hardware I will put what I want on it when I want or is this opposite of what that lost forgotten article is about the "USA constitution"Maybe UK people has enough guts / b*lls to get Apple to allow users to do what they want when they want, at least there is still law and justice in UK.[/citation]

Huh? You lost me on that one. Let me clear this up right quick for all of the questions about the BOM and the total cost. iSuppli doesn't deal with off the shelf prices, everything they are quoting is in anticipation of the quantities that the product is dealing with (i.e. 1M+ pieces) and their cost estimates are the best in the business. Also, as far as manufacturing labor costs go, this usually ranges from 6 to 10 dollars, depending on the country of origin. iSuppli usually includes this cost in their teardown (they did with the iPhone 3GS, and most other smartphones) but in this case they probably are still trying to get a handle on what the recent Foxconn labor upset will do to costs, since allegedly Apple is eating up some of the cost to guarantee higher wages for the workers.

Are we done here?

 

[ADM-86]

[citation][nom]insider3[/nom]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.[/citation]

development cost? marketing cost? the apple police?(the ones that go and tell you that you are a thief and raid your house,they cant be cheap. xD)

Blaming a mayor antenna/reception flaw on the software that displays the status $0...because life greatest **** ups are free.

 

[marcusmurphy]

[citation][nom]jitpublisher[/nom]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.[/citation]

I work in manufacturing and if you have ever built anything you would know that material is, on average, about 60-65% of the cost with labor & overhead accounting for the rest. At most, software, labor, & overhead included... the iPhone 4 costs $300. Still a cool $300 profit for Apple.

 

[rcmaniac25]

Did anyone else notice that the Application Processor is listed as Samsung A4 instead of Apple A4? I know Apple didn't actually design/make it and there are articles proving it but is this a solid fact or did iSupply guess on who made the chip?

 

[kingnoobe]

@Jit I think you're over thinking. Believe it or not it's not that much more since it's mass manufacterin. Now if they were only making a few thousands ya you may have a point. But their not just making thousands... Their making millions, and that makes a huge a difference.

 

[watcha]

Am I to read into these comments today (all of which are unfounded) claiming to know the marketing and RND costs of Apple - that Apple should NOT aim to make a profit?

It's like there are GENUINELY people trying to suggest that a good company is one which doesn't make a profit. LOL.

A good company is one which makes the MOST PROFIT and still has PEOPLE WHO ARE HAPPY AT WHAT THEY GOT FOR THE PRICE.

Given Apple has just had the most successful phone launch in history, and given that the majority of those are re-orders, they're doing pretty damn well.

 

[watcha]

'You aren't getting what you pay for when you are on a crappy network that wants $2500 for the next two years'

Well, 1.7 million people disagreed with you within 3 days.

And it's not like the network charges go to Apple anyway.

And it's not like when you sign up for a contract that ALL YOU GET is a phone. You get a phone number, free internet (depending on the contract), free calls, free text messages for 2 years.

Silly, silly comment

 

[1pp1k10k4m1]

[citation][nom]insider3[/nom]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.[/citation]

I'm not sure if you're correct or not for a new one, but I know at the Apple Store near my house they told me if I didnt buy AppleCare it would be almost $800 to replace my 32GB 3GS if anything went wrong. Hence I bought AppleCare, and something went wrong...

 

[chibiwings]

so much for profit

http/www.engadget.com/2010/06/24/iphone-4-drop-test-yields-results-video/

 

[beayn]

[citation][nom]watcha[/nom]'You aren't getting what you pay for when you are on a crappy network that wants $2500 for the next two years'Well, 1.7 million people disagreed with you within 3 days.And it's not like the network charges go to Apple anyway.And it's not like when you sign up for a contract that ALL YOU GET is a phone. You get a phone number, free internet (depending on the contract), free calls, free text messages for 2 years.Silly, silly comment[/citation]

There goes the Apple fanboy again. Guess what, Apple does get a significant portion of the network charges, that's how they charge a lower price for the phone itself when you sign a contract. Otherwise they'd charge $600. As you said, they're in it to make profit, if they only sold the phone for 200 and didn't get any of the network charges they would not be making profit. Put that Apple Diploma down, it's feeding you misinformation.

 

[orionantares]

I don't think some people know how this works. The network subsidizes the cost of the phone because they will make that money and more back from your contract fees. That's also why the early termination fees were increased for advanced devices, I don't know the exact fees for ATT because I use Verizon but for Verizon it's up to $350 for smartpones and up to $175 for regular and multimedia phones. Those fees are for cost recovery. So if you want to know what the Apple is getting per phone, take your cost to purchase along with the early termination fee that ATT will charge you.

As for R&D and advertising, most companies usually cover those costs with the initial release price that early adopters pay. The thing with Apple is they never reduce the prices on their devices to actually match their age and having covered their R&D costs like other manufactures will do.