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IPhone 4 costs $188 to make

techcrunch.com

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Re: IPhone 4 costs $188 to make

#11

Post by mikeryan »

lokiujhytyu wrote: post #9
donohoe wrote: post #2

Does that include shipping, packaging, marketing, design, research, legal, office space, utilities, software and all the rest? Didn't think so.

Thats not the point - this isn't an attack on Apple's pricing it's a typical industrial teardown BOM. You can get them for everything. Retail price is typically 2-4x BOM depending on how complex the product is and how long it will be in the market It's interest to the consumer is when a cell phone company is charging you $500 for the phone AND locking you into a contract.

(but, you know, they're not charging $500 AND locking you into a contract right?)

Re: IPhone 4 costs $188 to make

#13

Post by mikeryan »

donohoe wrote: post #2

Does that include shipping, packaging, marketing, design, research, legal, office space, utilities, software and all the rest? Didn't think so.

This reminds me of the whole thing with pharmaceuticals. pills 2-X cost $.10 to make - the first pill, however, costs millions.

Re: IPhone 4 costs $188 to make

#14

Post by csomar »

As another commenter noted, design, innovation, packaging, marketing, employees and obviously profit/taxes... aren't counted here.

But yes, the iPhone is pricey if I compare it to other devices. For example, Google Nexus One have a better resolution, memory and processor that the 3GS, but the 3GS is more expensive.

I don't bother paying $1K or more on a phone, but at least this phone comes with cutting edge technology from the inside (speedy processor, large memory, Open OS...) and the outside (High resolution screen and Camera, amazing design...)

Re: IPhone 4 costs $188 to make

#16

Post by wmeredith »

mikeryan wrote: post #13
donohoe wrote: post #2

Does that include shipping, packaging, marketing, design, research, legal, office space, utilities, software and all the rest? Didn't think so.

This reminds me of the whole thing with pharmaceuticals. pills 2-X cost $.10 to make - the first pill, however, costs millions.

The first pill costs from $500,000,000 to $1,000,000,000 and that's just for FDA approval.

Source: http://www.pkdcure.org/Research/Resources/FDADrugDevelopment...

Re: IPhone 4 costs $188 to make

#17

Post by duskwuff »

Keep in mind that iSuppli's reports have been described (by daringfireball, as well as others: http://daringfireball.net/2007/07/isuppli) as "bullshit". A lot of their price numbers (especially the ones for unusual parts, like the CPU and LCD in the iPhone 4) are pretty much pulled out of thin air.

Re: IPhone 4 costs $188 to make

#18

Post by vetinari »

donohoe wrote: post #2

Does that include shipping, packaging, marketing, design, research, legal, office space, utilities, software and all the rest? Didn't think so.

Why do people mix SG&A into COGS discussion?

We are talking gross margin here, not net profit.

Re: IPhone 4 costs $188 to make

#19

Post by cubicle67 »

mikeryan wrote: post #13
donohoe wrote: post #2

Does that include shipping, packaging, marketing, design, research, legal, office space, utilities, software and all the rest? Didn't think so.

This reminds me of the whole thing with pharmaceuticals. pills 2-X cost $.10 to make - the first pill, however, costs millions.

Unsourced claim here: saw somewhere that about 75% of the cost of medication goes to advertising. We're taught to believe that it's the R&D that's the expense, but it's not; it's advertising.

Re: IPhone 4 costs $188 to make

#20

Post by ericd »

csomar wrote: post #14

As another commenter noted, design, innovation, packaging, marketing, employees and obviously profit/taxes... aren't counted here. But yes, the iPhone is pricey if I compare it to other devices. For example, Google Nexus One have a better resolution, memory and processor that the 3GS, but the 3GS is more expensive. I don't bother paying $1K or more on a phone, but at least this phone comes with cutting edge technolog…

In what universe does this phone cost $1k or more?
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