According to a preliminary teardown analysis provided by IHS, the estimated hardware cost of the 16 GB version of the iPhone 5 is $199, which is up from an estimated $188 for the iPhone 4S in October 2011. If $8 of assembly cost is included, the 16 GB iPhone 5 may cost Apple about $207, the 32 GB version $217 and the 64 GB model $238.
The cost not included in this calculation are secondary items such as R&D, shipping as well as PR and marketing. However, given the fact that Apple has non-contract prices of $649, $749 and $849 for its iPhones, there is still a very comfortable profit margin this device.
IHS said that the increased cost for Apple is due to more expensive display and wireless components, while the price for NAND Flash has fallen considerably. In the base model, the most expensive part is the display with a cost of $44 and the wireless section with a cost of about $34. The 16 GB flash chip is among the cheaper parts with just $10.40 cost.
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(can I thumbs down my own post?)
Apple company/logo aside, if any company was doing this stuff, I would be very upset with them. I can understand having to recoup marketing and research and stuff, but a 300+% markup!? There is no way they aren't just upping the price for pure profits, and the sad part is: they'll still sell an insane amount of them. Corporate greed like this sickens me.
So according to my neutral analysis of this article: Apple is a greedy company that sells underpowered devices for ridiculous prices. It's always nice to take a step back, check to see if your convictions hold any ground, and be re-assured.
Who is to blame for this? Buying customer or the company? Being greedy is in the nature of any company. They take money from anyone who is willingly give it. People should be more aware of the choices and what suits them best.