In addition to everything else said below, I find these articles to be
just curiosities. Apple can set the price wherever they want and only
need to worry about how much people are willing to spend and not how
much they cost to manufacture. Obviously if the price people are willing
to pay is too low compared to how much they cost to manufacturer then
Apple will stop manufacturing them and figure something else out.
On 09/25/2018 11:29 PM, Yuma Decaux wrote:
Hi mark,
The article doesn't state the Bill of Material, but purely bases itself on
costs of components. it pretty much omits several phases in the logistics of
getting an iPhone out to the customer.
Being a hardware/software design house, and being part of the hardware tech sector
in Brisbane, we come across a lot of scenarios, and what is stated below does not
mean that Apple makes near 300% of margin. unless otherwise stated, there is a
balance sheet between overheads (salaries, facilities, R&D), then packaging,
shipping, and after care services, surplus units for retail store exchanges, and
the list goes on, vs the actual profits.
Apple being a vertical company, it makes a higher margin than say Amazon which
is more horizontal, made of collaborations with its army of retailers. Still,
to state that Apple simply makes that much margin is probably not correct, and
a great ink shedding tool for media as the tradition goes.
This does not change my opinion about the new iPhone though, which I have
touched at the local telecom store, it felt exactly like my iPhone 8+ and
nothing the sales person told me prompted me to upgrade at this date.
Have a great day
A++
On 26 Sep 2018, at 2:19 pm, M. Taylor <mk...@ucla.edu> wrote:
The $1249 iPhone XS Max is made out of only $443 worth of parts
By Reuters
. Apple's new iPhone XS Max has about $443 worth of parts, according
to a new analysis.
. The device that was torn down was the 256GB model, which retails for
$1249.
. Apple CEO Tim Cook has previously said he's never seen a teardown
estimate that's "even close to accurate."
. Still, it's clear Apple likes to make a healthy margin on its
iPhones.
Apple shaved some parts from the display in its largest new iPhone, helping
keep costs under control in what has become the priciest component of its
phones in recent years, according to a new cost analysis of the device.
TechInsights, an Ottawa, Ontario-based firm which rips open phones to
analyze their contents and estimate the cost of the parts inside, said on
Tuesday that the iPhone Xs Max with 256 gigabytes of storage capacity
contains about $443 in parts and assembly costs, compared with $395.44 for
the 64-gigabyte version of last year's iPhone X.
Apple released a trio of new phones earlier this month, including an update
on last year's iPhone X, called the iPhone Xs, that starts at $999, and the
budget-minded iPhone Xr that starts at $749. But it was the iPhone Xs Max -
with a 6.5-inch display that uses so-called OLED technology for richer
colors - that pushed new pricing boundaries, starting at $1,099.
In its cost analysis released on Tuesday, TechInsights found that the single
priciest part in the iPhone Xs Max - the display - cost $80.50, compared
with $77.27 for last year's iPhone X, which featured a smaller 5.8-inch
screen. The relatively small increase in cost despite the larger screen size
was because Apple appeared to have removed some components related to its
so-called 3D Touch system, which makes apps respond differently depending on
how hard users press the screen.
"All told, what they took out adds up to about $10, so this $80 estimate
would have been about $90," Al Cowsky, who oversees cost analysis at
TechInsights, told Reuters in an interview. "They had a trade-off in cost."
An Apple spokeswoman did not respond to a request for comment about the
study.
But Bob O'Donnell of TECHnalysis Research said Apple likely made the right
decision to focus on ensuring it could deliver a larger-screened model this
year economically.
"For a certain group of people, the whole thing is about the screen. It's
driving the whole experience and it's what is making people excited about
using the phone," O'Donnell said.
Other costs that increased were the phone's processor and modem chips,
primarily because the chips used newer chip-making techniques from Intel and
Taiwan Semiconductor Manufacturing Co Ltd to boost their performance while
taking up the same space. The 256-gigabyte iPhone Xs Max TechInsights
analyzed sells for $1,249 in the United States.
Original Article at:
https://www.businessinsider.com/iphone-xs-max-teardown-and-parts-cost-estima
te-2018-9
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