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iPhone 7 launch 7th September at 6pm (live stream details)
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clewsy
10-09-2016
That was a unit cost that I was given from a supplier for something I do in my day to day job. Clearly as I pointed out that is the direct cost of production and doesn't include all the other indirect costs that go on.

The economies of scale really bring down unit cost if it sells well. But you cant knock Apple for using the power of the brand and the pricing strategy of premium pricing. It works for their brand and loyalty exists in all markets.

What you have to do if you want to look past the brand is focus on the components. Look what is being used, which supplier sells them etc.

No point knocking Apple as they do what they do well. It's always been a designer brand and it will lose its way, just like it did in the late 80s before returning once again on mass.
d123
10-09-2016
Originally Posted by clewsy:
“That was a unit cost that I was given from a supplier for something I do in my day to day job. Clearly as I pointed out that is the direct cost of production and doesn't include all the other indirect costs that go on.”

Except your direct costs where out by a hefty amount.

The $231 figure is just the cost of components...

Is the technical term for what you did commonly referred to as a thumbsuck?
Gilbertoo
10-09-2016
Originally Posted by d123:
“Where did you get your exchange rate from? There aren't $4 to the £.



http://www.recode.net/2015/9/29/1161...49-to-purchase”

Plus R&D.

Their anechoic chambers cost $100m a few years back. I worked for a mobile company once and the cost are quite high.

Making phones ain't cheap.
jchamier
10-09-2016
Originally Posted by Gilbertoo:
“Making phones ain't cheap.”

Designing your own CPUs costs 10 times that easily.

"Apple Inc acquired P.A. Semi for $278 million in April 2008" and has been investing in the CPU design team ever since. They've done some amazing things given they have an ARM architecture licence (ie, they can do what they want with ARM technology).

https://en.wikipedia.org/wiki/P.A._Semi
d123
10-09-2016
Originally Posted by Gilbertoo:
“Plus R&D.

Their anechoic chambers cost $100m a few years back. I worked for a mobile company once and the cost are quite high.

Making phones ain't cheap.”

We agree on that, I'm still trying to see where he gets his idea that the total cost of an iPhone is £60 from.
clewsy
10-09-2016
Originally Posted by d123:
“Except your direct costs where out by a hefty amount.

The $231 figure is just the cost of components...

Is the technical term for what you did commonly referred to as a thumbsuck?”

Lol it's great you think Apple spend so much on their products. Keep believing that one.

That cost of components you quote is retail, 1 unit. That isn't a representative figure of the real costs to Apple.

But anyway what does it matter , Apple are not going to lower prices and Apple fans will still buy the phone. It makes no difference to the fan club what Apple charge.
clewsy
10-09-2016
Originally Posted by d123:
“We agree on that, I'm still trying to see where he gets his idea that the total cost of an iPhone is £60 from.”

As I've said figures I was shown within my job. Clearly I can't discuss more than that and it was for the previous version of the iPhone.

Given unit costs and discounts I've seen on components, I totally believe that figure is a representative cost for someone like Apple.
Stereo Steve
10-09-2016
With the manufacturing and purchasing power of Apple I would be very surprised if an iPhone cost anywhere near £60 to build in therm of actual raw component cost to Apple. That's only one cost though and it's kind of academic as you can add a lot of things into the 'cost' besides basic purchase cost of materials so it's massively complicated and open to interpretation.
Stig
10-09-2016
How about some facts:
According to Time, the Apple iPhone 6 cost $200.10 to build, while the iPhone 6s is pricier still, coming in at $211.50 according to IHS Technology's estimates. The iPhone 6s Plus costs $236 to make.

http://www.alphr.com/features/388273...e-cost-to-make
Stereo Steve
10-09-2016
Originally Posted by Stig:
“How about some facts:
According to Time, the Apple iPhone 6 cost $200.10 to build, while the iPhone 6s is pricier still, coming in at $211.50 according to IHS Technology's estimates. The iPhone 6s Plus costs $236 to make.

http://www.alphr.com/features/388273...e-cost-to-make”

Now define 'cost'.
jchamier
10-09-2016
Originally Posted by Stereo Steve:
“Now define 'cost'.”

That website says parts and assembly. Doesn't even have an attempt at the overheads that worked out what parts to buy and how to assemble. Or even the volume of custom parts and their development costs.
calico_pie
11-09-2016
Originally Posted by clewsy:
“Lol it's great you think Apple spend so much on their products. Keep believing that one.

That cost of components you quote is retail, 1 unit. That isn't a representative figure of the real costs to Apple.

But anyway what does it matter , Apple are not going to lower prices and Apple fans will still buy the phone. It makes no difference to the fan club what Apple charge.”

Lol it's great that you think it only costs £60 to make an iPhone, even though any actual source puts the figure at 2-3x that.
calico_pie
11-09-2016
Originally Posted by Stig:
“How about some facts:
According to Time, the Apple iPhone 6 cost $200.10 to build, while the iPhone 6s is pricier still, coming in at $211.50 according to IHS Technology's estimates. The iPhone 6s Plus costs $236 to make.

http://www.alphr.com/features/388273...e-cost-to-make”

But some bloke once told clews it cost £60, so cited industry estimates must be wrong.
d123
11-09-2016
Originally Posted by clewsy:
“Lol it's great you think Apple spend so much on their products. Keep believing that one.

That cost of components you quote is retail, 1 unit. That isn't a representative figure of the real costs to Apple.

But anyway what does it matter , Apple are not going to lower prices and Apple fans will still buy the phone. It makes no difference to the fan club what Apple charge.”

Lol, it's funny that you don't even work in the industry but somehow think you being shown something 'secret' (nudge nudge wink wink) suddenly makes you an expert?

Did you read the link? There was even an itemised list of component cost...

Not too mention Stig has posted a separate analysis made that comes to a similar price.

Acting like a know it all when you don't really know makes you come across as the king of assumption, and you know what they say assuming makes you.

Oh, and by way, I'm not buying an iPhone 7, I think they are now too expensive.
linkinpark875
11-09-2016
Originally Posted by d123:
“Lol, it's funny that you don't even work in the industry but somehow think you being shown something 'secret' (nudge nudge wink wink) suddenly makes you an expert?

Did you read the link? There was even an itemised list of component cost...

Not too mention Stig has posted a separate analysis made that comes to a similar price.

Acting like a know it all when you don't really know makes you come across as the king of assumption, and you know what they say assuming makes you.

Oh, and by way, I'm not buying an iPhone 7, I think they are now too expensive.”

I doubt we will see many iPhone 7's around cheapest contract is £50 quid. The glossy black will be even more rare since it's not available in 32gb. Not worth paying all the extra when a new design is due in 2017.
jonmorris
11-09-2016
Anyone I know with an iPhone that I've had a chance to meet seems to be saying they're not upgrading, and the most common reason is the headphone jack, followed by the reason that they're quite happy with their current one.

One is on a SIM only deal so has no reason to upgrade, but I suspect those on a contract will be persuaded to upgrade by their network rather than go to SIM only and actually save a fortune per month (I bet they're all on pretty high rates as most people go for paying more monthly in return for a lower upfront cost).
Richard1960
11-09-2016
Originally Posted by jonmorris:
“Anyone I know with an iPhone that I've had a chance to meet seems to be saying they're not upgrading, and the most common reason is the headphone jack, followed by the reason that they're quite happy with their current one.”

Originally Posted by jonmorris:
“One is on a SIM only deal so has no reason to upgrade, but I suspect those on a contract will be persuaded to upgrade by their network rather than go to SIM only and actually save a fortune per month (I bet they're all on pretty high rates as most people go for paying more monthly in return for a lower upfront cost).”

I have a i phone 6 on sim only and I am not upgrading myself the headphone jack is an issue with me.

And the fact i am happy with my sim only deal.
linkinpark875
11-09-2016
I would love a jet black 4.7"'one with duel cameras but seems it's not to be.
d123
11-09-2016
Originally Posted by jonmorris:
“Anyone I know with an iPhone that I've had a chance to meet seems to be saying they're not upgrading, and the most common reason is the headphone jack, followed by the reason that they're quite happy with their current one.

One is on a SIM only deal so has no reason to upgrade, but I suspect those on a contract will be persuaded to upgrade by their network rather than go to SIM only and actually save a fortune per month (I bet they're all on pretty high rates as most people go for paying more monthly in return for a lower upfront cost).”

I'm on a sim only plan, I usually buy my phones sim free, I was considering buying a 7 but reconsidered when I saw the price increase, my current phone will do perfectly well for another year.
Stig
12-09-2016
Originally Posted by linkinpark875:
“Not worth paying all the extra when a new design is due in 2017.”

although the '10th anniversary iPhone' has been speculated about for some time, it doesn't mean it's going to happen:
http://www.macrumors.com/roundup/iphone-8/

Up until a few weeks ago, lots of people expected an 'iPhone Pro' but that was obviously wrong. The truth is, nobody really knows until a product is launched.
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