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The Cost of Building the New iPhone 5S and 5C

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September 25, 2013 5:05:44 PM

Interesting. Now make a similar article for some Android phones.
September 25, 2013 5:14:25 PM

Hmmmm.....Are they making any money from these phones? Seems like awfully slim profit margins ;) 
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September 25, 2013 5:51:42 PM

Not exact. People let Apple do this.
SHUT UP AND TAKE MY MONEY! :-)
September 25, 2013 5:57:15 PM

Why wouldn't Apple do what they are doing? they make massive profits, and sell in massive quantities. As long as people keep buying it, they will keep doing it. Apple isn't doing anyone any favors, nor should they, its simple business. If the majority of people didnt like how much margin Apple charges, and didnt buy the phones, the would be forced to either lower prices, or add enough features to make it worth the cost.
September 25, 2013 6:26:32 PM

How about all the R&D that went into it, paying all the engineers, programmers, etc. Every phone is overpriced, but don't forget how expensive it is to pay the designers and analysts at every level.
September 25, 2013 6:32:20 PM

Speaking from the standpoint of a small business owner. On an item that sells for $500, my cost will be somewhere between $410 and $440, meaning profit of 60-90, before overhead, rent, employees, power, etc, etc.

Having a profit margin of $450 on an item that sells for $650 would be absolutely godly. But, id feel pretty dirty making that kinda profit margin on items in that price range.
September 25, 2013 8:14:36 PM

ok, let us factor in R&D, other overhead cost, which is valid.

i do have one question though, if a higher storage cost like a freakin $10, then why sell it for an additional $100??? that's why i like android more, most have expansion slots, you're not forced to buy the higher capacity, not to mention you can use external drives/flash drives
September 25, 2013 8:17:40 PM

this is the reason why I only buy low cost budget phone that is below $300.

I think I now gonna go $200 budget for my next phone. Smartphone can be obtain for $150 already. So $200 budget seems right
September 25, 2013 9:14:37 PM

I'm confused. The Apple fanboys keep throwing around R&D, but when you release the exact same product in a less expensive housing the R&D costs are nearly $0. Unless of course you believe the "Plastic Perfected" marketing (in which case you are a fool) - on that note you can add in the astronomical amount of marketing expense to keep the distortion field active.
September 26, 2013 3:46:25 AM

Don't confuse the 2-years CONTRACT price (~$200) with the NO CONTRACT price (~$600).
September 26, 2013 7:23:29 AM

Anyone who pulls up an Apple quarterly report can see their profit maring per phone pretty fast. Take total phone profit, divide by units sold, and voila - there it is. I haven't looked in a couple quarters but last I checked it was about $350 per unit. So that's about $200 for actual materials and labor then another $100 for everything else including marketing, R&D, and much much more. So basically they are doing very well for themselves.
September 26, 2013 10:09:06 AM

SGS4 costs $220 to make, and is sold for $769.99...it's a business thing, not just Apple.
September 26, 2013 10:10:10 AM

Why is this back at the top of the list?
September 26, 2013 10:16:05 AM

Apple sells these at loss, they make their money selling plush dolls resembling the iPhone
September 26, 2013 10:50:18 AM

Bunch of Idealists. It's all about business even if you reverse apple with other companies. It would all be the same. The law of supply and demand. If you have demand even if artificial, why would you sell at a lower margin? The company needs the added cash to be on top. It is just a game believe it or not.

Grow up and don't think too much about being fanboys/gays. Buy what you need at the price you deem appropriate. Nobody is forcing you to buy anything from whichever companies. It is not like commodities wherein price manipulation will sabotage the economy.
September 26, 2013 11:50:07 AM

cheap shit for high price
September 26, 2013 1:11:39 PM

Please guys do not forget R&D this cost developed for months before starting to be transfer to the final product and in this kind of companies most of the times represent most of the cost.
September 26, 2013 1:13:00 PM

Software included is pure R&D
September 26, 2013 9:58:14 PM

none12345 said:
Speaking from the standpoint of a small business owner. On an item that sells for $500, my cost will be somewhere between $410 and $440, meaning profit of 60-90, before overhead, rent, employees, power, etc, etc.

Having a profit margin of $450 on an item that sells for $650 would be absolutely godly. But, id feel pretty dirty making that kinda profit margin on items in that price range.


How else do you expect Apple to make billions of dollars to save away? Besides cutting deep into app developers pockets that is.

September 27, 2013 7:42:25 AM

Apple have captured the market but they are not all that innovative, compare APPLE to ASUS (Asus with their innovation is a huge difference from apple.)
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