Apple $599 iPhone less than $300 in parts
Apple will likely have some wiggle room to cut prices on the iPhone, if a report from iSuppli proves correct.
The consulting firm just released an analysis of what the components will likely cost for the
Some guy with an iPhone
(Credit: Declan McCullagh/CNET Networks)Meanwhile, the $599 iPhone, sporting 8GB of memory, will have a component budget of $264.85 hardware cost and a manufacturing cost of $280.83. The large margins make price cuts inevitable. "They will cut prices later on," said Jagdish Rebello, director and principal analyst with iSuppli. "It is hard to imagine anyone else getting 50 percent margins for long."
You're probably thinking that the iPhone has got to cost a lot more to make than that. Look at the picture. It's at least 20 feet high. That's actually just a projected image. The phone fits in a person's hand.
Apple has only released a few specifications on the device. It's still not known, for instance, what processor will be inside the phone, though there are some indications that it will be
osX, the other s/w, the r&d invested into the device... even if the margin is a
100%, all the $$$ that went into it doesn't mean apple will ever profit from it... if
the sell 10mil a year maybe...
osX, the other s/w, the r&d invested into the device... even if the margin is a
100%, all the $$$ that went into it doesn't mean apple will ever profit from it... if
the sell 10mil a year maybe...
Seriously, if you want to buy something close to cost, go ahead migrate to China.
What's next, Cnet post about the profit margin of Starbucks coffee?
Seriously, if you want to buy something close to cost, go ahead migrate to China.
What's next, Cnet post about the profit margin of Starbucks coffee?
how expensive RAZRs used to be? Now they are practically free.
how expensive RAZRs used to be? Now they are practically free.
the worth of the parts, it's how they are used. Look at Dell: cheap parts but
utilized to function in the most basic of ways. LG would be another. Not much
knowledge goes into making those things. Cookie-cutter. You get people like
'Monkeyrun' moaning about the price. He's just a CHEAP commoner! ...or a
kid still living with his folks expecting everything to be handed to him like the
hot meals his Mum makes him. Just sit on the sideline and wait for the bugs
to be ironed out. Let those with cash to burn buy the 1st issue then make
your move. There ya go Michael Kanellos of c/net; you got a response. Oh
and while you're at it, write an article about the price of parts needed to make
a Zune why don't ya?
- M u s t b e a s l o w n e w s d a y.
- by rlcato January 19, 2007 7:08 AM PST
- You could've waited for something to happen. Why print this? It's not whats
- Like this Reply to this comment
-
(8 Comments)the worth of the parts, it's how they are used. Look at Dell: cheap parts but
utilized to function in the most basic of ways. LG would be another. Not much
knowledge goes into making those things. Cookie-cutter. You get people like
'Monkeyrun' moaning about the price. He's just a CHEAP commoner! ...or a
kid still living with his folks expecting everything to be handed to him like the
hot meals his Mum makes him. Just sit on the sideline and wait for the bugs
to be ironed out. Let those with cash to burn buy the 1st issue then make
your move. There ya go Michael Kanellos of c/net; you got a response. Oh
and while you're at it, write an article about the price of parts needed to make
a Zune why don't ya?