 
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. | |
|
 | 
tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
clubs: | Re: Why welcome to the iphone blog. | |
|
| |
| |
imanogre
join:2005-11-29
Mcdonough, GA | Re: Why Hell, the coke I'm drinking right now cost me 1.50 out of the vending machine, yet cost .08 USD to make. Where's link on the front page to that? | |
|
| | | TheMG
join:2007-09-04
Edmonton, AB | Re: Why Bottle or can?
Over here from vending machine a can is $1.25 and bottle is $2.00 | |
|
| | 
neowulf
join:2000-10-20
Port Orange, FL
| I'm going to have to say yes. Buying those overpriced items is stupid. It is one thing to have a designer suit that is tailor fitted. It is a whole different ballgame when you start buying designer t-shirts for 50-100 bucks off a rack because of a label, that was made in the same factory as that 5 dollar wal-mart t-shirt.
But welcome to America I guess, where consumerism preys on the idea of you have to keep up or be better then everyone else around you. Because in the end that 50 dollar shirt makes you better then everyone else right?
As for the Iphone, consumerism wins again. Am I saying that companies shouldn't make any money, not at all, and would be stupid to say that they should sell anything even close to cost. But I think that the point that they come out with a new phone every year that just happens to have just a few new changes, causes the whole newest best thing. More power to the people who have the money to buy the newest and latest gadgets. But sadly I think there is a number of those same people who also fall into credit debt and default on their mortgage and wonder where they went wrong. | |
|
| | | 
Neyland
join:2003-02-04
USA
| Re: Why said by neowulf  :But welcome to America I guess, where consumerism preys on the idea of you have to keep up or be better then everyone else around you. Because in the end that 50 dollar shirt makes you better then everyone else right? If people place a value on the $50 shirt and judge you based on the $50 shirt, then yes... it does make you better than the person wearing the $5 shirt made in the same factory. | |
|
| 
tangojoker
Peace
join:2004-01-25
Beaverton, OR | exactly. why is this news ? isnt this plain & simple economics. | |
|
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????
--
Hopefully the Ministry Of Truth and Thought Police can sort this whole thing out.
»www.otadigitaltv.com
Frank Shoemaker would call this noise
GO Cubs GO!!! | |
|
| 
RARPSL
join:1999-12-08
Suffern, NY
| Re: Huh??? said by Bink63 : 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). | |
|
| |
Bink63
Tweet THIS
Premium
join:2002-10-06
Everywhere | Re: Huh??? But...
how can the iPhone 3GS be "Just $4 more expensive than iPhone 3GS" to make???
IOW...
Karl typo'd!
 | |
|
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. | |
|
| 
sousademiami
join:2003-02-04
Miami, FL
 ·Comcast
 ·AT&T Southeast
| Re: And the point is....? I think the real issue is that usually, a little bit of knowledge is more dangerous than no knowledge at all. People just don't think about cost of products beyond ingredients.
There's also:
-Assembly
-Packaging
-Shipping
-Hardware Development
-Software Development
-Advertising
-Support
-etc...
--
OASAASLLS | |
|
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. | |
|
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
Premium
join:2005-03-10
Callahan, FL | Re: ummmm You got to be kidding? | |
|
| |
Neyland
join:2003-02-04
USA
| Re: ummmm said by JSRoman :You got to be kidding? Remember who's reign we're under right now.... | |
|
| | | 
FiL
Premium
join:2005-08-16
Silver Spring, MD | Re: ummmm I love not being controlled by Cheney! | |
|
| | | |
Neyland
join:2003-02-04
USA
| Re: ummmm said by FiL :I love not being controlled by Cheney! Yet a living example of how the devil you know is better than the devil you don't. | |
|
| |
| | 
Deep Throat
@teksavvy.com
| Re: ummmm said by GOLFnSUN :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. I'd pay that just to see John Hodgman in Apple commercials all day long. | |
|
| | | |
| 
The Dv8or
DSLReports Forums -- The Mouse House 2.0
Premium
join:2001-08-09
Danbury, CT
clubs:
| said by twinkledee12 :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!
--
You're so vain... I bet you think this post is about you. | |
|
| | 
Cheese
Premium
join:2003-10-26
Naples, FL
clubs: | Re: ummmm YEA, WHAT HE SAID! LoL! | |
|
| | |
| | 
David
No,there is another.
Premium,VIP
join:2002-05-30
Granite City, IL
clubs: | LOL.... that was good.... | |
|
| |
| |
Logan 5
Silver and Black and blue in 2009
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 ? | |
|
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$. People get in business to make a profit, thats what Apple is doing and that is what AT&T is doing. If you don't like the price point then don't buy it. | |
|
| 
furlonium
Computer Over? Virus equals Very Yes?
join:2002-05-08
Bethlehem, PA
| Re: its like the cable market said by kylemorris :The price for a 6 ft HDMI cable is 30$ 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. Got my 6ft HDMI cable from Eforcity for $.78 
--
»www.myspace.com/intranet
El perro, el perro es mi corazon. El gato, el gato, el gato no es bueno. Cilantro es cantante, Cilantro es muy famoso. Cilantro es el hombre con el queso del Diablo! | |
|
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 | Re: What did they leave out? the secret listening device! | |
|
|
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. | |
|
iria64
join:2003-04-14 | what about the 32gb unit? What would be interesting to know is the difference in material cost between the 16gb and 32gb unit.
For the most part I would think all other production/development costs would be about the same. | |
|
|
sonicmerlin
join:2009-05-24
Cleveland, OH
| Hmm Actually I believe the point of these tallies are to demonstrate how significantly marked up the iPhone is, and how much exclusive agreements between manufacturers and wireless service providers keeps the prices of these phones excessively inflated.
If exclusivity contracts were banished (by the FCC), and every phone was available to be used with every carrier (especially when everyone adopts LTE in 2 years), the prices of products like the iPhone would fall significantly.
Remember, if the hardware costs less than $200, and the unsubsidized cost is $600, you're paying $400 (whether direct or in monthly bills) just for a mobile phone OS. That's like paying for Windows over and over again every 2 years. And I guarantee you development of a phone OS for proprietary hardware is significantly cheaper than development of multipurpose operating systems for desktops.
It would be nice to see Apple and all phone manufacturers forced to compete with each other. That way phones like my LG Dare wouldn't be freaking crippled (no Wi-Fi, WTH?) so Verizon could gouge its customers. | |
|
hayabusa3303
Over 200 mph
Premium
join:2005-06-29
clubs: | So Apple wants a cookie? | |
|
| |
SLD
Premium
join:2002-04-17 | Grammar? "... there's a few changes ..."
Really? There *is* a few? | |
|
sam64
join:2006-07-31
Newtown, PA
| Why is this news??? I have to agree with some of the comments posted but have to ask the question - what warrants this to be news?
If every product was sold at the cost of producing it then the majority of the corporations in this world would be out of business and most of us would be unemployed.
There is a cost to product development, marketing, software, warranty, etc that is not captured in the BOM cost.
Also, whoever started this thread should know that any goos business will price their product at "what the market is willing to bear"; not what it cost. When you have a "hot" product the market is willing to bear the higher price and this gives you the money to invest in R&D and other things. When the cost becomes greater than what the market is willing to bear you kill the product. It is that simple! | |
|
|
See 7 replies to this post |
|
VictorWI
join:2003-05-30
Greendale, WI | Is there an app for that? Wanna know how much it really costs to build and iPhone? There's an app for that!  | |
|
| |
gigahurtz
Premium
join:2001-10-20
Palm Coast, FL
clubs: | I like Apple products.. but even I am getting tired of all these iPhone discussions. | |
|
|
|
|
New iPhone 3GS Costs $178.96 To Make
Does that make you stupid too? Anyone buy clothes? A vehicle? Does it cost the slaves in 3rd world countries $50+ dollars in material for a shirt or pair of jeans? Does Nike spend $150 dollars too manufacture Air Jordans? 
·
·
