Lest we forget, Apple has always positioned itself as a prestige brand. The SE and budget friendly iPads for schools are the exception. If you can't afford the BMW or ancillary cost of owning one, many folks would say . . . get the Toyota instead. I'd sure like for iPhones to be cheaper, but, it's not like they've got a monopoly on the market. I mean, there's always Android. That's the way it goes.
Cristóbal -----Original Message----- From: viphone@googlegroups.com <viphone@googlegroups.com> On Behalf Of Sieghard Weitzel Sent: Wednesday, September 26, 2018 5:26 AM To: viphone@googlegroups.com Subject: RE: iPhone XS Max Tear-Down and Parts Cost Estimate, Business Insider And what do you all think how much places like Walmart make on a lot of the clothing they sell especially the stuff they manufacture themselves in places like Bangladesh where people who make the stuff get paid a couple of bucks a day for putting in 12 hours of work. I sell brand name outdoor clothing and equipment like North Face and Mountain Hardwear. A top of the line Gortex jacket from any of these companies can run $500 US, typically that is sold at a 50% margin which means a 100% mark-up or in good old plain terms the retailer doubles the price he pays to the company. So, said jacket which the customer pays $500 for has a cost for the retailer of $250. In fashion such margins are easily double or triple. What does the manufacturer, say North Face, pay for the actual material in the jacket? There is the face fabric which is what you feel when you touch the outside of the jacket, typically some form of nylon or polyester or a mix of those. Then there is the Gortex membrane which is laminated to the face fabric and which allows moisture in vapour form to pass through but moisture in the form of water droplets can't go in. Finally there is the lining and of course there are the zippers, maybe a bit of velcro at the cuffs, some draw strings etc. I honestly have no idea what such materials cost, but I doubt it is more than $50 and then of course there is the labour involved in cutting the material and sewing it or, as is often the case now, of glueing it together. But again such labour is performed at relatively low rates in countries like Vietnam or China, the people there get paid better than the people who make the Walmart T-Shirt or Hoody in Bangladesh and often companies like North Face, Patagonia etc. have at least a bit more of a social conscience as compared to Walmart, but nonetheless they make huge profits on these garments. As I said, in the fashion world it's even crazier, take a designer dress which as comparatively tiny amounts of material because it's meant to be worn by some cutie who wants to show off more than what is covered up and then it costs $800 or more, there is absolutely no connection between the price and the material and workmanship here and 90% of what you pay is because it says Dior on it or whatever other designer name that is currently hot. On top of that fashion items often have a lifespan of a year or two before they are replaced by newer styles and that's even worse in many cases as the amount of time people use their top of the line iPhone. It says "Apple like to make a healthy profit" or whatever the exact words were, I mean Dah, of course Apple want sto make as much profit as they can get away with, all businesses want to do that. I certainly don't give all my customers 20% off just because I think what the companies tell me I should sell something for is too much and as a retailer with wage costs, building costs, advertising and all the rest of it I barely break even at a 32% margin and of course there is plenty of product where unlike the 50% margin I make if I sell a piece of clothing at full price I only make 20 to 30% and by the end of the year if I make 37 or 38% I am quite happy because it means I did make a 5 or 6% profit. Regards, Sieghard -----Original Message----- From: 'RobH.' via VIPhone <viphone@googlegroups.com> Sent: Wednesday, September 26, 2018 12:58 AM To: viphone@googlegroups.com Subject: Re: iPhone XS Max Tear-Down and Parts Cost Estimate, Business Insider A product at point of sale, is far beyond the sum of its constituent parts. ----- Original Message ----- From: "M. Taylor" <mk...@ucla.edu> To: <viphone@googlegroups.com> Sent: Wednesday, September 26, 2018 5:19 AM Subject: iPhone XS Max Tear-Down and Parts Cost Estimate, Business Insider 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 -- The following information is important for all members of the V iPhone list. If you have any questions or concerns about the running of this list, or if you feel that a member's post is inappropriate, please contact the owners or moderators directly rather than posting on the list itself. Your V iPhone list moderator is Mark Taylor. Mark can be reached at: mk...@ucla.edu. Your list owner is Cara Quinn - you can reach Cara at caraqu...@caraquinn.com The archives for this list can be searched at: http://www.mail-archive.com/viphone@googlegroups.com/ --- You received this message because you are subscribed to the Google Groups "VIPhone" group. To unsubscribe from this group and stop receiving emails from it, send an email to viphone+unsubscr...@googlegroups.com. To post to this group, send email to viphone@googlegroups.com. Visit this group at https://groups.google.com/group/viphone. For more options, visit https://groups.google.com/d/optout. -- The following information is important for all members of the V iPhone list. If you have any questions or concerns about the running of this list, or if you feel that a member's post is inappropriate, please contact the owners or moderators directly rather than posting on the list itself. Your V iPhone list moderator is Mark Taylor. Mark can be reached at: mk...@ucla.edu. 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