Quote:
Originally Posted by NIKKG
I was referring to isuppli. It does not cost anywhere near what isuppli says. When your selling units in the millions, you get pricing thats rock bottom. Isuppli has no idea what contract deals Apple has made with its vendors. I still think these phones cost no more than 50 at the very most. If Apple was gonna pay more, they'll just build their own factory and manufacture it themselves. Just like those bumpers and cases, they probably cost anywhere from 2-5 cents to produce. The packaging it comes in probably cost more.
When your dealing with major orders, say Apple with Samsung for processors, Samsung can give it to Apple at cost, say 10 cents each to make, and than charge Apple for use of its equipment, labor, and overhead expensives, etc. So overall, those processors probably cost no more than 5 bucks to Apple. There is a huge difference from what we pay and what huge manufacturers pay for components.
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Usually when checking cost of those parts the default pricing is based on buying 1000 or so..while Apple may get some discounts you can't say they get 3x the discount..The component manufacturer still need to make a profit...and there is also labor costs...
Apple wont go and build its own factories because it is not worth it.. factories cost hundred of millions to billions to construct...Apple only makes a few products in general, they are not a hardware manufacturer..it owuld nto be economic...
Example Samsung builds TVs and a supplier of LCDs, OLEDs and etc...so their factories are put to use for multiple things..to Apple it is not worth it as they only produce a few products...
With labor cost and etc 150-170$ is most likely what Apple pays...its not that bad considering they get commission from appstore + the device going for 200$ + them earning a % of the contract from AT&T and other carriers world wide..