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Forums » New iPhone 3GS Costs $178.96 To Make
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Comments on news posted 2009-06-24 14:05:34: iSuppli's bill of materials (BOM) cost estimates are always an event, riling up armchair CEOs and brand fanboys into a lather after every new smartphone release. iSuppli's latest analysis of the iPhone 3GS finds the 16GB version costs $178. ..

page: 1 · 2 · 3
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imanogre

join:2005-11-29
Mcdonough, GA
Why

And this is news because? If someone is willing to be stupid and overpay for something, let them.


Bink63
Tweet THIS
Premium
join:2002-10-06
Everywhere

Huh???

quote:
New iPhone 3GS Costs $178.96 To Make
Just $4 more expensive than iPhone 3GS...
01:25PM Wednesday Jun 24 2009 by Karl Bode
HUH????


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cghh

join:2001-01-15
Milpitas, CA

And the point is....?

I'm not sure what the point is. There is a heck of a lot more to a device such as the iPhone than the bill of materials out of which it is made. There is the hardware design and engineering on how to put the parts together. There is the software, including free software upgrades, which is really what make the iPhone what it is. Software development is not cheap. Yes, there is no incremental cost for the software for each unit, but still, this large cost has to be recovered. And, since Apple is a profit-making company, there is the markup for this.

Whenever discussions like this come up, there is always the conflict between people who believe that the cost of an item should be related to the cost of producing it, and those who believe that the price should be whatever the market bears.


jmn1207
Premium
join:2000-07-19
Reston, VA
·Verizon FIOS

Hon Hai, Hon Hai, it's Off to Work....

Is that in US dollars or Taiwan dollars?

Is that for one unit or a bulk order? There are far too many guestimations being applied to put any legitimate faith in these numbers.

If game players can make a profit selling units below cost and making it up on the hopes of consumers purchasing 1-2 games each month over a couple of years, certainly the cost of a phone can be surpassed with a 2 year contract charging $60 or more dollars every billing cycle. This seems to be a viable and lucrative business model.


RARPSL

join:1999-12-08
Suffern, NY

reply to Bink63
Re: Huh???

said by Bink63 See Profile :

quote:
New iPhone 3GS Costs $178.96 To Make
Just $4 more expensive than iPhone 3GS...
01:25PM Wednesday Jun 24 2009 by Karl Bode
HUH????


I assume that the article is intended to point out how much of a mark-up there is on the phone (especially the unsubsidized purchase price).

twinkledee12
Premium
join:2009-06-24
Fort Wayne, IN

ummmm

this disturbs me. at&t should be selling the phone for the cost of the phone plus whatever the cost of distribution is. this makes me wonder what other providers are charging more than what the phone actually costs to make. the fcc and congress defiantly should look into this.

JSRoman
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join:2005-03-10
Callahan, FL
You got to be kidding?


TKJunkMail
Enjoy the sun
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Avalon, NJ
·Sprint Mobile Broa..
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reply to twinkledee12
said by twinkledee12 See Profile :

this disturbs me. at&t should be selling the phone for the cost of the phone plus whatever the cost of distribution is. this makes me wonder what other providers are charging more than what the phone actually costs to make. the fcc and congress defiantly should look into this.
How about the cost of marketing and advertising to all the Apple fanatics that keeps them all lathered up over the latest and greatest from Apple. That probably is at least $100/phone.
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Logan 5
Some people go WAY over the top
Premium,MVM
join:2001-05-25
The WasteLAN
·Pacific Bell - SBC

As long as there are

Fan bois and fan gurls willing to pay any price to have the latest trinket from [insert Co. name here] There will be Companies like AT&T more then ready to charge what ever their Credit Cards will bear for the "privilege" of long activation waits and crappy service from an overloaded network....

No Thank You, I'd really rather not.


DaveNJ
No Fear

join:1999-09-01
New Jersey
apple vs Pc

Cant the same argument be used to describe a mac and a pc ? They bought could run the same software, by why are macs more expensive ?


The Dv8or
DSLReports Forums -- The Mouse House 2.0
Premium
join:2001-08-09
Danbury, CT
clubs:

reply to twinkledee12
Re: ummmm

said by twinkledee12 See Profile :

this disturbs me. at&t should be selling the phone for the cost of the phone plus whatever the cost of distribution is. this makes me wonder what other providers are charging more than what the phone actually costs to make. the fcc and congress defiantly should look into this.
Yeah! Research and development is free! Software should be free! If I can't actually see the part and buy the part, then I shouldn't pay for any of the process! Sell em wholesale! How dare Apple try and recoup their employees' salaries through sales! I shouldn't have to pay for someone else to have a job! This is America, damnit! The government should sue Apple, and make them only sell the phone for what they pay for in parts!
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Luna Saisho

@charter.com

Cost for parts, but...

These cost for parts things bug me. The reason is that this is how much the parts that make up this phone are worth. But then there's research and development, production, distribution, software (O/S) dev, etc. I don't really care that this is an iPhone, just that I find that this particular type of report is misleading, causing people to think the wrong things.

There is a lot more to it then simply the parts.

kylemorris

join:2007-12-14
Richardson, TX

1 edit
its like the cable market

The price for a 6 ft HDMI cable is 30$ when in reality it only cost
3$. People get in business to make a profit, thats what Apple is doing and that is what AT&T is doing. If you don't like the price point then don't buy it.


insomniac84

join:2002-01-03
Schererville, IN

What did they leave out?

quote:
finds the 16GB version costs $178.96 to make -- just $4 more than the iPhone 3G
quote:
While the use of many iPhone 3G parts keeps the 3GS's price down, there's a few changes. Most notably, the 3GS features a $5.95 Bluetooth/FM/WLAN Broadcom chipset
So what did they leave out that costs $1.95?

kylemorris

join:2007-12-14
Richardson, TX
the secret listening device!


Cheese
Premium
join:2003-10-26
Naples, FL
clubs:
reply to The Dv8or
Re: ummmm

YEA, WHAT HE SAID! LoL!


espaeth
Digital Plumber
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join:2001-04-21
Minneapolis, MN
·voip.ms
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Are En Dee?

What makes a 1TB hard drive more expensive than an 80GB hard drive even though the raw material and production line costs are nearly identical?

Research and Development

Gotta recoup the cost of actually developing the thing in the first place.


biggbrother
Premium
join:2001-11-07
Providence, RI
But How Much Does AT&T Pay?

I bet AT&T Pays Apple at least $400 per $16GB unit.


DaveNJ
No Fear

join:1999-09-01
New Jersey
·Comcast
·Patriot Media


1 edit
reply to twinkledee12
Re: ummmm

said by twinkledee12 See Profile :

this disturbs me. at&t should be selling the phone for the cost of the phone plus whatever the cost of distribution is. this makes me wonder what other providers are charging more than what the phone actually costs to make. the fcc and congress defiantly should look into this.
Equate this to you working, then think again ? My job shouldn't pay me anymore, then for lunch , gas , and rent for my home, because otherwise i am stealing from my company. What are my minimal costs. I shouldn't have cable, computer, etc. I should only make what the cost are for me to do my job. I think someone should look into this... -sarc --
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