iPhone 5 Costs $199 in Parts; Sells for $649 Off-contract

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[citation][nom]DrinkTray[/nom]A 326% mark up for Crapple? Those are some loyal customers. At least the Foxconn employees are well provided for...[/citation]

What exactly does mark-up have to do with value? The statement should read "$649 for crapple? ..." the margin is irrelevant.
 
[citation][nom]gfair[/nom]The competition is catching up? That's a laugh. The competition is advertising the latest iPhone as out of date.Neutral people represent the majority of iPhone buyers, because Apple fans tell them to? Is your theory that they mind-control random people into a phone they don't want? Or do they use brain worms?If Apple is already losing market share in the smartphone space, why can't anybody who claims this point to market research, while the trustworthy industry pundits point to market research showing iOS growth?[/citation]

Take a look at the daily number of activations. http://www.droid-life.com/2012/09/18/androids-q3-smartphone-market-share-numbers-posted-68-sticking-with-google/

Apple is selling more units each quarter but so was RIM until recently. Now the difference is satisfaction with iPhones is high but you don't have to be a genius to see a growing trend towards Android and away from iPhone, which is of course only natural because until quite recently Apple was arguably the best, whereas now the broad market consensus is the Samsung Galaxy S3 is the best with the sales to reflect it. Incidentally Samsung passed Apple as the world's largest smartphone maker:

http://www.webpronews.com/samsung-passes-apple-is-worlds-top-smartphone-maker-2012-05

So yes, facing competition, losing market share, have a nice day.
 
[citation][nom]wildkitten[/nom]The red flag in your comment is the fact you said you were doing a "neutral" analysis twice, yet there was nothing neutral about it, much less mature.I am no Apple fan myself, but you make the comment "corporate greed" making your bias obvious from the beginning. That right there means you are not coming from this in any neutral way. You also do not even try to make any sort of educated estimate on what Apple's R&D and marketing costs are. That means your "neutral" analysis is not mature.Are they upping the price for pure profit? Of course they are, THEY ARE IN BUSINESS. Do you insist only making enough in salary to pay your bills? Do you have any left over to put in savings or to make a personal profit? If so, your personal greed sickens me.The fact is, no company will ever be successful by charging more than the market can bear. If their product is too expensive, it simply will not sell. If someone else wants to spend their money on the product, that is their business. How someone spends their money is no business of yours. You also ignore the fact that this is non contract pricing. Pricing for non contract phones will always be on the high side to make it attractive to be on a contract. Your "neutral" analysis provides no educated estimates of just how much of a percentage of iPhones will actually be sold off contract.Not to mention have you ever seen how much an Android phone costs off contract? $649....http://smartphones.techcrunch.com/ [...] r-contractHm, that seems to be the exact same price since the Razr Maxx comes with a base 16GB storage.The fact is, the off contract prices for the iPhone 5 is nothing out of the norm for high end cell phones sold off contract.[/citation]

Thank you!!! God i'm not an apple user, but everyone on TH strictly attacks apple, but Samsung and all other manufacturers do the same thing! Off contract android phones are just as expensive!!
It's just business.
 
[citation][nom]cozalp[/nom]Who is to blame for this? Buying customer or the company? Being greedy is in the nature of any company. They take money from anyone who is willingly give it. People should be more aware of the choices and what suits them best.[/citation]

Underpowered? Don't take my word for it. Go look at the benchmarks and reviews. It is not underpowered
 
[citation][nom]emjayy[/nom]Are there other companies getting high markup on their top end smartphones when they are sold to carriers? Of course there are. Yet Apple is the only one who managed to accumulate over 100 billion dollars in unused cash in offshore accounts all over the world. So what's different? Well, the other major players like Samsung actually design and make parts used in various industries. They spend quite a bit on expanding and streamlining their manufacturing processes and factories as well as on R&D for numerous products which eventually sell at various price points. They also spend on various humanitarian efforts around the world. Ultimately, they spend more widely than Apple does. Apple pours its R&D spending into just a tiny lineup of products which all use the same internal parts and are only released once a year. They manufacture nothing whatsoever themselves, they give nothing to charity, and they spend exactly $0 on designing cheaper products for the majority of consumers who insist on buying the most affordable technology.[/citation]

Nice story, incredibly jaded, but nice try. Apple has been accumulating profit for longer than the competitors at those levels, that's part 1, they've had a huge jump on the competition in this area. Second, Apple has better supply chain management than their competitors reflected in lower costs for a comparable product (try Googling the cost of the iPad relative to competitor products, the vertical integration allows them to keep costs down while keeping performance up drawing out extra profit). Third, Apple has built one hell of a brand, which makes them less susceptible to competition than the likes of the Android manufacturers, all of whom are more head to head with each other than Apple is. Fourth, they are killing it in tablets, which no other manufacturer is and pulling massive profits from there.

I imagine it will catch up with Apple within the next 3 years but in the mean time they are rocking and good on them for doing so, I just wish they'd actually continue to substantially innovate, which they tend not to do.
 
last month, people were praising that Samsung was making more off their S3 than Apple. A month ago, it was all cool to get a bigger profit margin off your device, but now that it is Apple getting the profit margin it is HORRIBLE.

HORRIBLE are the Blind fans, be them Appple, or Android, or whatever.
 
[citation][nom]gfair[/nom]Apple spends nothing on R&D? How about its own CPU? Own Operating System? Entirely custom phone design, computer design, MP3 player designs? The entire PC industry is releasing a flood of Ultrabooks after Apple advanced the ultra-slim concept to the current stage (Yes, other slim designs came before, Apple advanced the concept, didn't invent it). Apple also set off the Tablet wave now rocking the industry, and they have an entire cloud initiative tied into their iWorld ecosphere to share music and information instantly with others. Apple is spending hundreds of millions on a green energy data farm in North Carolina. Interface design, advanced materials research, custom ASICs, a bespoke industrial design wing, the continual replacement of toxic or harmful materials with environmentally friendly materials... the list is gargantuan.What's more, the wave of R&D that Apple sets off in other firms in the industry each time its latest products come out amounts to a ripple effect of tens of billions of dollars globally.So nice try, but you are just way too uninformed about the company.[/citation]

Anyone with two working pairs of eyes can see that I never said anything above about Apple not spending R&D. I said above:

Apple pours its R&D spending into just a tiny lineup of products which all use the same internal parts and are only released once a year. They manufacture nothing whatsoever themselves, they give nothing to charity, and they spend exactly $0 on designing cheaper products for the majority of consumers who insist on buying the most affordable technology.

The point I'm making is that Apple accumulated all this unused cash and profits because they really only make a few expensive devices that are essentially the same device on the inside. That's nothing compared to what their competitors have to do to get so many more devices on the market each year. Apple pours R&D money into tweaking an OS that is only capable of working on 10 devices at any given time. Big Whoop! And these devices mainly use the same chipsets, which means that they need to produce and test even less drivers than anyone else in the industry. The new CPU is still based on the ARM A9 design, so they didn't create it entirely from scratch. They now do their chip designing in-house precisely because they want to LOWER their R&D costs in that area. They just rebuilt the core with some tweaks to get more instructions to run per second. That's nothing special because that's exactly like what's done with the Snapdragon chip. Big Whoop! They're spent all of the last year trying to get more speed from dual core chips when the rest of the industry has moved on to quad cores and faster memory bus speeds. If they were really as clever and as innovative as you want to believe them to be, they would have invented a completely new mobile chipset architecture with their own instruction set instead of paying ARM to use their architecture. Custom phone design? They're only designing one phone all year long! Big deal. Everyone else is doing dozens. So they're expanding their cloud offerings and building data farms....who isn't?

At the end of the day, Apple's R&D expenditure benefits no one else but Apple as they don't sell or lease the modifications they make to existing tech to anyone else. Their severely limited product lineup allows them to spend as little or as much as they want to. They don't create anything that isn't designed to be used on more than a few hardware configurations that use the same internal components. So they really have no excuse if they fail to produce something that works well. Any company that spends all year designing a couple of devices made from the same internal components is supposed to make those devices work well. You don't need expensive parts to accomplish this, and that's what we're seeing above in the chart.
 
Supply and demand.

I think the price is too high so I don't buy one. I will report back if the ghost of Steve Jobs ever corners me in an alley and forces me to buy one at gunpoint.

Otherwise, I don't understand all the anger.


 
[citation][nom]cozalp[/nom]Who is to blame for this? Buying customer or the company? Being greedy is in the nature of any company. They take money from anyone who is willingly give it. People should be more aware of the choices and what suits them best.[/citation]

I do not think that it is the nature of the company to be greedy. Maybe I am wrong but steam/valve sell alot of their games for a very cheap price. I will give one example. Team fortress 2 was brand new and sold for 39.99 then after a short time they dropped it to 19.99 and now it is free to play. The game is a very popular game and I am sure they could sell it for some money. They also have huge sales of 75% off a few times per year.

Sure companies have to make money but there is a fine line between making money and being greedy. I feel its usually the mega companies that are greedy because they have the ability to say "we could survive without charging so much but we are greedy so we will charge this much"

Just my humble opinion.
 
All I want to know is where can i get the screens for less than $50 whats the min buy in at that price?
1000 if so give me the info so i can get in contact with them. Because Ill make my money back in a few months from all the people who will break there screens before the end of first quarter next year.
 
Something I don't hear much about is,

Apple changed the power connection meaning all previous iphone docks for cars (them fancy expensive overpriced docks) are completely useless now even with an adaptor since it would not fit.


So say if you spent $150 on a iphone dock for the 4S. Well now you need to spend another $150 (guesstimating numbers) to be able to support your 5.

Meaning that is an extra $300 wasted on external products for your apple components.


If that doesn't scream corporate greed then I don't know what does.



Not like that matters, the sheeple clearly have the thousands of dollars to invest in a iPhone (contract fees + accessories + base phone price)

I on the other hand am happy with 2 or 3 year old tech mainly because the tech is still powerful enough (if not more powerful) than my gameboy and is capable of playing roms which is all that really matters to me, that and taking quality pictures.


With the prices of these smartphones we are better off buying tablets for our expandable needs versus a 4" screen (or 5" if you are lucky).

For all of the people that are like "I can't wait for the ipad mini 7" tablet", well, I can indefinately e.g. never.

I was expecting ASUS to release the Memo 370T but instead the went with the Nexus 7. Perhaps next year they will release the updated version of the Memo 370T with a SD slot and everything else yummy.


For now I am fine with my $80 no contract phone and $25 a month service with no extra fees which is where contracts rape smartphone shoppers.



TX
 
i hate apple as much as the next guy; but if you all had a chance you'd all be doing the same.

If you make $100 dollar toys but people are willing to pay $300 for them, wouldn't you sell them for that price? Would you go "That's cool, just give me $100"? Thought so.

Now thumbs down all you want; i hate apple as a company but you're all just envious
 
[citation][nom]Texas_Made[/nom]Something I don't hear much about is,Apple changed the power connection meaning all previous iphone docks for cars (them fancy expensive overpriced docks) are completely useless now even with an adaptor since it would not fit.So say if you spent $150 on a iphone dock for the 4S. Well now you need to spend another $150 (guesstimating numbers) to be able to support your 5.Meaning that is an extra $300 wasted on external products for your apple components.If that doesn't scream corporate greed then I don't know what does.Not like that matters, the sheeple clearly have the thousands of dollars to invest in a iPhone (contract fees + accessories + base phone price)I on the other hand am happy with 2 or 3 year old tech mainly because the tech is still powerful enough (if not more powerful) than my gameboy and is capable of playing roms which is all that really matters to me, that and taking quality pictures.With the prices of these smartphones we are better off buying tablets for our expandable needs versus a 4" screen (or 5" if you are lucky).For all of the people that are like "I can't wait for the ipad mini 7" tablet", well, I can indefinately e.g. never.I was expecting ASUS to release the Memo 370T but instead the went with the Nexus 7. Perhaps next year they will release the updated version of the Memo 370T with a SD slot and everything else yummy.For now I am fine with my $80 no contract phone and $25 a month service with no extra fees which is where contracts rape smartphone shoppers.TX[/citation]
So because Apple changes the connector ones every 3rd or 4th generation that proves corporate greed? If so, by your standard you must hate all Android manufacturers even more. Verizon swap your Bionic for a Razr cause of data issues? Well, you have to buy all new accessories, like a new case, new car dock, etc. and they are both Motorola phones. Same issue for any other manufacturer.

Accusing a company of greed because they change something so minor less frequently than the competition is immature hate and bias.

And guess what, ANY phone user has contract fees+accessories+base phone price. It's funny, people on here have bashed Apple for having a tiny screen, now, they bash Apple for making it larger thus making someone buy a new case or car dock or whatever. Did you bash Samsung because they made Galaxy S3 customers buy all the new accessories because the phone was different than the S2?

As I've said before, I am hardly an apple fan, though I have a great deal of respect for Steve Wozniak. But you know, you are as much of a sheep as you and others call Apple fans. You see an Apple article and you "have" to bash them regardless of how stupid your arguments make you look.
 


Before you start becoming even more overly defensive for your beloved companies you have invested tens of thousands into for the last 5 years or so let me say something to clear the air.

I never said Apple is the only company to do this. This is a thread about apple, therefore I am commenting on a corporations doings (who cares what they call themselves they are still the same Pyramid).

I don't hate apple any more than I hate any other patent trolls or profit based companies (which is almost every single company)

If you think this is bashing, you probably agree with the UK ruling that trolling is an offense worthy of jail time or fines.

Please get off your high horse and step down into reality with the rest of us.

I pay $25 a month for my 1200m t+t service with a $80 to $170 phone.

If I had read anything about the SG2 to SG3 I would have commented the same.


Just because I said "If changing the dock to make people pay more for new accesories doesn't scream corporate greed then I don't know what does."

Does not mean that I am bashing apple.

This is why I know you are a liar and a troll, you don't have the intellect to understand my post so you flame me saying I am bashing apple for "corporate greed"

Guess what Einstein take what I said and insert the comparison you gave me about the SG2/3 and its the exact same comment.

You just want to flame people for "flaming apple" when in reality I wasn't even flaming them but corporations as a whole.


Perhaps you should take a second before posting to think about what you are typing before letting your fingers go to town on your keyboard.


Sorry to dissapoint you that I am not an apple basher but infact I am a corp basher.

Obviously you share the same opinion I do towards corporations yet you seem to defend apple like its your child.


Thanks for the lol.
 
[citation][nom]Texas_Made[/nom]Before you start becoming even more overly defensive for your beloved companies you have invested tens of thousands into for the last 5 years or so let me say something to clear the air.I never said Apple is the only company to do this. This is a thread about apple, therefore I am commenting on a corporations doings (who cares what they call themselves they are still the same Pyramid).I don't hate apple any more than I hate any other patent trolls or profit based companies (which is almost every single company)If you think this is bashing, you probably agree with the UK ruling that trolling is an offense worthy of jail time or fines. Please get off your high horse and step down into reality with the rest of us.I pay $25 a month for my 1200m t+t service with a $80 to $170 phone. If I had read anything about the SG2 to SG3 I would have commented the same.Just because I said "If changing the dock to make people pay more for new accesories doesn't scream corporate greed then I don't know what does."Does not mean that I am bashing apple.This is why I know you are a liar and a troll, you don't have the intellect to understand my post so you flame me saying I am bashing apple for "corporate greed"Guess what Einstein take what I said and insert the comparison you gave me about the SG2/3 and its the exact same comment.You just want to flame people for "flaming apple" when in reality I wasn't even flaming them but corporations as a whole.Perhaps you should take a second before posting to think about what you are typing before letting your fingers go to town on your keyboard.Sorry to dissapoint you that I am not an apple basher but infact I am a corp basher.Obviously you share the same opinion I do towards corporations yet you seem to defend apple like its your child.Thanks for the lol.[/citation]
Actually I am not bashing any corporation. I think neither Apple or Samsung or any other company is in any way wrong for trying to make a better product. Sometimes making a product better means accessories for a different product may not work.

And let's be honest, very rarely do we buy accessories for one thing and expect them to work for something else. The fact that you point to this as greed is ignorance run amuck. The fact is Apple can't win with the mindless bashers. Some bash them for making the screens too small, but they make a bigger screen and get bashed because it's not backward compatible with previous accessories. It's a no win situation.

And when did this mindset come in that somehow someone's older iPhone won't work? I have an older phone that while I no longer use as a phone, it still makes a great music player, GPS, etc and all the accessories I bought for it amazingly still work with it. Never once have I bought product Y and expected accessories I bought for product X to work with it.

And you're flaming corporations as a whole for this type of thing is also quite ignorant. No one can advance anything while making everything backward compatible. If companies tried not to appear greedy to you, cell phones would still have to be carried around in bags, or worse, installed in cars, so all the accessories would still be compatible.

The fact is, when you buy a new product, a reasonable person expects to buy some sort of accessory for it. Should all laptops be the same size, have all the ports in the same places just so you don't have to go out and buy a new laptop cooler and a new case or new accessories?

The fact is, no one is forced to buy the iPhone or any other phone. And those that do do so knowing full well what they have to expect. If someone doesn't want to buy a new case for $10 they certainly aren't going to buy the phone in the first place. And you have no right to tell people how to spend their money.
 
with this gargantuan profits apple should be forced to build it factories here on USA instead of China. Apple is soo greedy it has nil charity contribution and don't care to give back to the American public by giving more jobs.
 


Are you struggling to find ways to insult my intellect over corporate greed? Sure seems like you are 😉


Lets face it, when you buy a graphics card for your desktop you don't expect to have to buy a whole new motherboard just to be able to use the graphics card due to differentiations in slots unless there has been a major overhaul of the design of the graphics cards. The only problem you would encounter is lack of power from psu or lack of space from case but with the way things are going right now I am able to fit more cards in smaller spaces for less power. Obviously they know what they are doing and implemented it properly.

If desktops have it so easy when it comes to universal fittings, why is it so hard to do that with a phone? Why should I not be allowed to tell the world how it is when corporations try to milk every last cent they can from you before inevitably going bankrupt.

Why should Home Audio all use the same receiver outputs and inputs when everyone can be unique and fun and make you spend more than you really need or make things incompatible just for the sake of making money.


Phones are a prime example of greed in corporations and if you don't think so that is your error of thinking, not mine.

So before you go around flaming people for being "unintelligent" or "ignorant" perhaps you should remove the veil from your own eyes.

Why have desktop computers been able to do so right for so long what cellphone makes haven't been able to do ever besides micro hdmi ports and mic jacks.


Here goes a little information for you since you don't know,

A prime way to keep the consumer base feeding you money is to force them to have to buy new "accessories" every time they buy a new phone.

The majority of uneducated cellphone buyers will not care because there isn't anything they can do about it besides care or not care because it is not our decision but their choice.

Computer component manufacturers came to the realization that they didn't need to reinvent the wheel to be able to sell products and that it was in their best intrest to keep the wheel the same to make sure everyone is able to easily improve/change components without a sweat or tear.

Then you look at Apple.

Time and time again have they shown their true colors to the consumers and time and time again the consumers either forget or just stop caring. Which is why apple's closed source based systems have been alive for as long as they have.

Steve Jobs admitted himself that he didn't need to invent a wheel to be able to claim it as his own which is what he did with xerox.

So you have a product born from a company known for stealing tech and ideas claiming them as their own subjectifing their consumer base to these arbitrary views of designing products and working together with others to play nice for the consumers.


Yes you have to buy a new phone case to fit your phone because phones are not a universal shape.

Yes you can replace your SD card if the phone has an expansion bay.

Yes you can replace the power cable if the phone is made by a half decent manufacturer. E.G. 3 of my friends and my brother have phones of all shapes n sizes and they all still use the same power cable.

Obviously things can stay the same while others change but all I have to say is form after function.

If your phone that you produced cannot function in the same means as your phone from the previous model that says one of two things, either 1. You are required to update the external components due to the new and improved power delivery system or 2. They just want to make you buy new things to go with your new phone.

Regardless.

There are phones that match chargers. EG Motorola and HTC.

They have been doing it for years and continue to do it.

So why does the apple charger have to be unqiue to the apple phone? Because they always find a way to milk the consumers from all walks of life of their cash, if its not in service overcharges for false data reports or convincing them that the new phone is better than the last so they should upgrade or forcing them to buy new accessories to fit their phone.


If companys have been doing it for years without a hitch, why cant apple join the party? Closed source.

You can call me ignorant all you want and you can flame my intelligence however you like, that won't ever make you right.


Don't even get me started on the MBP and its super glued SSD and soldered ram.
 


Forced to build factories here? I'm curious why anyone outside of the company leadership would presume to FORCE a company to do anything. IT"S THEIR COMPANY.

They make products. If you choose to give them your money, they will give you ("give back") one of those products in return.

It's your choice.







 
The Apple fanboys like to point out other companies like Samsung Motorola are all setting the same profit margin for their phones, except they forget there is one very important difference: microSD slot, which means unlimited storage. Despite Apple supposedly have a huge pile of cash and spending heavily in R&D, as the fanboys claim, Apple still FAILED to deliver this product feature in their phone. I suppose those so called R&D money all end up in lawyers' pocket or being used as bribes. Even the cheapest Android phone has microSD support. And which company is greedy?
 
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