Also, the cost of the engineering to improve the performance of the products, 
and then as you say, labor, packaging, storage, distribution, promotion, and 
who knows what else - me, I'm not a CPA, but I'm sure one could think of way 
more. 

Best regards,

Carolyn 

-----Original Message-----
From: viphone@googlegroups.com [mailto:viphone@googlegroups.com] On Behalf Of 
Yuma Decaux
Sent: Wednesday, September 26, 2018 12:29 AM
To: viphone@googlegroups.com
Subject: Re: iPhone XS Max Tear-Down and Parts Cost Estimate, Business Insider

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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