Comments on: That $599 iPhone Costs $220 To Make

By: mm

mm — Fri, 13 Jul 2007 23:10:21 +0000

i love the iphone i wish i could win one in a contest!!!!!

By: mm

mm — Fri, 13 Jul 2007 23:09:07 +0000

i want an iphone so bad i wish i could wina contest adn win one

By: Daniel

Daniel — Sat, 07 Jul 2007 15:06:34 +0000

I’m posting from my iPhone and realized it is well worth the price because this thing is amaizing… Compare the ipods to the iPhone and you will see that apple never really lowers the price much.. So if you want I one go get it because they are not going down for a long time and when they do the updated one is soon to come out..
I highly recommend this gadget and I’ve always hated mac!

By: Percy

Percy — Fri, 06 Jul 2007 06:12:16 +0000

Hey, I have an idea to make a successful company. Let’s develop a really awesome product, spend years doing R&D coming up with great new ideas for lots of new things, spend lots of time making some software to run on this really kick ass phone, and then sell it for only the cost of the parts. Are these people complete idiots?

Cost of software development, R&D, testing, marketing, and other general overhead. Hello!?

By: Ajax Girl » Blog Archive » iPhone Weekend One: 700,000 Sold, $200million+ Profit For Apple

Wed, 04 Jul 2007 10:59:31 +0000

[...] on the cost of manufacturing an iPhone (see post July 2), Apple would have made a profit of between $200million and $266 million in 3 days (not including [...]

By: iPhone Weekend One: 700,000 Sold, $200million+ Profit For Apple

iPhone Weekend One: 700,000 Sold, $200million+ Profit For Apple — Wed, 04 Jul 2007 09:18:07 +0000

[...] on the cost of manufacturing an iPhone (see post July 2), Apple would have made a profit of between $200million and $266 million in 3 days (not including [...]

By: Steve Jobs would make P.T. Barnum proud | WinExtra

Steve Jobs would make P.T. Barnum proud | WinExtra — Wed, 04 Jul 2007 01:07:57 +0000

[...] upon you by above only cost from $200.00 to $268.00. This is according to reports in both posts by TechCrunch and CrunchGear as they quote different sources for the [...]

By: Concrete Stain

Concrete Stain — Tue, 03 Jul 2007 20:00:07 +0000

yeah I would say this is heavy speculation; and in accurate as to the ”total” cost.

-rbowles

By: Dave

Dave — Tue, 03 Jul 2007 17:43:57 +0000

Gadgets today over future savings. No wonder our country is so far in debt!
http://seminar7.vox.com

By: Matrimonio AT&T-iPhone: ¿se puede morir de éxito? « Reflexiones on line: Blog de David Bartolomé

Tue, 03 Jul 2007 16:13:58 +0000

[...] cosa está clara: Apple va a hacer mucho dinero con la venta del iPhone (no hay mas que ver los márgenes que [...]

By: beyondwww

beyondwww — Tue, 03 Jul 2007 13:24:54 +0000

Congratulations!!!! well I am awaiting Microsoft’s comments on the figures…
Hope the come up with some thing better.

http://www.youtube.com/watch?v=C5oGaZIKYvo

Beyondwww

By: Clifton

Clifton — Tue, 03 Jul 2007 12:57:09 +0000

Well I guess I will wait until they go on sale before I purchase one.

By: mojbiznes.pl

mojbiznes.pl — Tue, 03 Jul 2007 10:00:08 +0000

Ile kosztuje wyprodukowanie iPhona ?…

…czyli ile zarabia na tym Apple…

By: document.write("Markus Tressl");

document.write("Markus Tressl"); — Tue, 03 Jul 2007 06:10:23 +0000

power-by-numbers: 500′000…

500′000 — gemäss Analysten die Anzahl verkaufter iPhones in den USA zwischen vergangenem Freitag, 18:00h und Ladenschluss am Sonntag.Je nach verkauftem Modell (4GB oder 8GB, $499 oder $599) macht das……

By: Ansi

Ansi — Tue, 03 Jul 2007 04:04:38 +0000

This estimate is just based on parts.
What about advertising cost, cost of man power after manufacturing…
doesn’t it come with atleast a year of warranty?

If people are willing to pay for it, why not sell it for higher price? Its Apple!

By: Scott R.

Scott R. — Tue, 03 Jul 2007 03:36:14 +0000

Mike, get over it, Apple made it for $220, and turned around and sold it for $499/$599, it’s called profit on your investment. Unless they could take over 50% of the mobile market, the phone would never be sold for anything less than $300. File this under “duh”, it’s how a bar makes $300 on a $75 keg of beer. really, how is this news?

By: sarbarth

sarbarth — Tue, 03 Jul 2007 02:28:01 +0000

When people find something costly they make it a dream to buy that later. iPhone is a dream gadget to people. Dream can’t be $100 and that Apple knows.

By: Faisal

Faisal — Tue, 03 Jul 2007 00:45:04 +0000

Well said Nik Cubrilovic.

By: Johnnyc

Johnnyc — Mon, 02 Jul 2007 23:45:48 +0000

All you g3 bone heads. It is superflous because there is so much ambient wifi. Its amazing walking down the street with it. G3 is not faster than wifi.

By: reader

reader — Mon, 02 Jul 2007 22:50:49 +0000

It’s funny how all the little apple fanboys come out of the woodwork whining like little babies if anyone dare say anything they don’t like with “apple” in the title. Even more interesting is there is nothing negative in the article, it’s just a few factual tidbits and it clearly states the cost is for components only - not assembly. It would seem that some of you have poor reading comprehension skills.

By: Chris

Chris — Mon, 02 Jul 2007 21:48:52 +0000

You mean after 30 years apple finally built something that *appears* to have some margin behind it?

Bravo, Steve-o…Bravaaaaa…

(Lamest arse post I’ve read in a long time, Arrington. What was your margin when you were billing stupid amounts of money for Web 1.0 IPO’s? I love it when lawyers make stealth complaints about price.)

By: carmen

carmen — Mon, 02 Jul 2007 21:09:20 +0000

i dunno nic, Openmoko is going on sale next week for $300. and its virtually identical to the iPhone, except its not locked down to a particular software stack or carrier…i doubt theyre selling them at a loss.

By: pim

pim — Mon, 02 Jul 2007 21:07:00 +0000

I ment plumber, what a blunder, bummer

By: pim

pim — Mon, 02 Jul 2007 21:03:15 +0000

I read in the comments that the original blogger here is a lawyer. Well, to make a nice comparison, what if a lawyer’s bill would consist only of the amount of food, water, and electricity he consumed during the time he worked on your case. OMG a lawyer spends only $3 per working hour, why do I pay him $100 per hour? So let’s forget about the costs for the secretaries, the housing of the company and the lawyer himself, hardware and software, all kinds of support (blumper, electrician, copy machines), access to legal databases, the money the lawyer invested in his law school study, etc. etc.

By: Alan Wilensky

Alan Wilensky — Mon, 02 Jul 2007 20:16:42 +0000

Contract Manufacturing costs are not the whole story, as many have pointed out. It’s a complex mix fielding a CE device, and true, commodity pieces are often subsidized by the carriers (in the wireless business). Now we have a model breaker, where there is margin for the device alone, and there have been other premium phones that have sold separate from plans, and some folks buy expensive unlocked GSM and CDMA phones that their carriers do not sell. They spend up to 500 for a Nokia with 5 MP camera.

Im waiting for the 3G version of the iphone or a sure to be announced competitor, to replace my fairly nice Blackjack HSPDA phone. I switched from Nextel to Cingular, and I have never heard these words so often when I was with Nextel: ‘…what, what did you say, can you repeat that?’ Shoot.

Now, this is the down side to Apple and ATT, the worst sounding network on the planet that has reduced voice bandwidth, increased audio group delay, and just made all conversations less intelligible because they needed to re-allocate flexible bandwidth from voice to data in the channel mux, and ratcheted up the number of voice channels by lowering total voice passband from a fat, good ole analog cell days of 3khz, to a dynamically allocated peak traffic bandwidth of 1.9khz, that sounds muddy, poorly duplexed with lousy side-tone, and crap customer service as a side order.

whew!

Now, to make a phone or any other CE device takes:

the device parts and labor - say 220
support - unknown
returns sunken costs
docs, training, staff programs
regulatory crap (not insignificant)
warranty processing

There is much more to fielding this type of device and Apple is not making 50%, probably not even 20, maybe 20. But margins will get better as time passes.

I want a 3g iPhone NOT on AT&T Cingular. I’ll bet a competitive device is introduced by Samsung, LG, or Nokia, by end of year.