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dipsydoodle

(42,239 posts)
Sat Sep 8, 2012, 01:07 PM Sep 2012

What iPhones cost to make

Sleek, in demand and most definitely expensive – but the cost of actually making an iPhone is more than £300 less than the retail price.

The launch date for the iPhone 5 is approaching and speculation is rampant about what the features of the new phone will be. Recent financial figures revealed that, despite only owning around 10% of the global mobile handset market in 2011, Apple collected 50% or more of the industry's available profits.

It seems that the company must be making a sizable profit. Let's find out how much revenue Apple is making from the sales of iPhones by looking at the manufacturing costs of its iconic product.

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So if the materials cost roughly £118, and Dediu has calculated that an additional £58 is spent on manufacturing its smartphone, (a cost that includes the labour costs, transportation, storage and warranty expenses) we reach a total of about £176 to manufacture an iPhone that retails at £499. This represents a profit for Apple of £323 per iPhone.

http://uk.finance.yahoo.com/news/what-iphones-cost-to-make.html

Above figures are £'s : not US$'s. Multiply by 1.6 to convert to US$'s.

12 replies = new reply since forum marked as read
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dkf

(37,305 posts)
1. And look who benefits...
Sat Sep 8, 2012, 01:34 PM
Sep 2012

On April 16, Christopher Ailman, chief investment officer of the $152.9 billion California State Teachers' Retirement System, West Sacramento, told CalSTRS board members that with Apple's stock rally this year lifting the system's holdings in the company to $1.8 billion — or 1.2% of the total portfolio — they should consider buying put options to insure against a potential stock price drop.

http://m.pionline.com/apps/pbcs.dll/login?AssignSessionID=373475448413780&AID=20120430/PRINTSUB/304309977&ID=&CSAuthResp=1%3A373475448413780%3A110118%3A3%3A24%3Aapproved%3A460B3FCD6D2DCD3613C9D485E6ED6148

CalPers had a similar amount...

http://m.bizjournals.com/sacramento/#/articles/view/page_7510421

Corporations aren't people, they are what people retire on.

Moostache

(9,897 posts)
3. Indirect redistribution of the profits in the form of dividends is inferior.
Sat Sep 8, 2012, 01:57 PM
Sep 2012

If Apple made less profits because they actually made their products in the USA, then their dividends would be less by necessity, but their impact on the American economy would be greater. More jobs here = more economic activity HERE. More tips at restaurants. More impulse buys at the local stores and businesses. More taxes paid into the state and local governments that cannot print money beyond their revenue streams. IN short, the money that is horded as "profits" is really like sucking all the blood out of someone and then claiming that you can only save them with transfusions if we protect you above all else...

Additionally, your point about these company profits funding retirements is also another indictment - this time of the defined contribution retirement system that replaced defined benefits and pensions. Once again, the companies keep more and everyone less gets to fight over less, but aren't they magnanimous for even giving us that much?

 

dkf

(37,305 posts)
4. Those are state pensions I referred to, not defined contributions.
Sat Sep 8, 2012, 02:32 PM
Sep 2012

And growing the Chinese economy may have positive impacts in the long run, bringing more people out of poverty than exist in the US and creating middle class consumers.

Unfortunately their drive may be stronger than ours which sucks for us but is an amazing story. When it comes to type A...not all Chinese are type A but most type A people I know are Chinese.

I can't really begrudge the Chinese people anything. I think what they have done is amazing.

 

dkf

(37,305 posts)
6. Funny thing...this just popped up in another thread.
Sat Sep 8, 2012, 03:44 PM
Sep 2012

What would happen if the insurers win and the money to CalPERS is cut off? The Stockton pension plans could be terminated. The money already contributed by the city over the years would be put in a special CalPERS fund. Stockton wouldn't contribute any more money, and the pensions would depend entirely on how well CalPERS invests the existing pool of money.

It's likely the pension benefits would be reduced.


Read more here: http://www.sacbee.com/2012/09/08/4799363/stockton-bankruptcy-case-could.html#storylink=cpy


http://www.democraticunderground.com/10021302469

Moostache

(9,897 posts)
2. Which is EXACTLY why I won't EVER buy one of their products...
Sat Sep 8, 2012, 01:53 PM
Sep 2012

I know its heresy to many, but Apple is NOT a company worth admiring or supporting. That "profit" - whether it is exactly as stated or only partially correct - represents the gutting of America's middle class in vivid detail.

You see, people always run around asking the wrong question - "what happened to America's middle class" - instead of asking the right question - "where did the money go that USED to support America's middle class?"

The fact that Apple builds these things in China, utilizing slave labor camps and exploiting humanity on a scale not seen since Giza was a sand dune of no real significance, is a HUGE indicator of where exactly that money went. It goes to the "profits" of the corporations like Apple, who take the jobs, businesses and careers with good paying futures out of the United States and to the lowest bidder - even if that lowest bidder uses job standards and practices that are barbaric and inhumane.

If you are viewing this on an iPhone or iPad or iMac or Macbook, congratulations you can easily identify a big part of the problem every time you power on said device. But fear not, I am just as guilty (as is nearly EVERYONE) when I power on my LCD or LED monitor made in China or Indonesia to view the same things you see on your Apple doomsday devices.

Where did the jobs go? That's no mystery at all - they went to China and everywhere else that people work for next to nothing to avoid starving. They went to places where the people who make the devices cannot buy one with a year's wages.

Why did the jobs go? GREED. Plain and simple. It is unchecked, unabated greed that allows this to persist. Its sickening and its wrong and its at the heart or every single one of our problems in the world.

Greed for land.
Greed for money.
Greed for power.
Greed for profits.

I hate Apple.
I hate what they stand for.
I hate that they dream up such marvelous technology and then do everything in their power to make a buck (or a few hundred billion of them) without improving their communities, their country.

They (and everyone like them that design fantastic technology only to outsource the manufacturing to subhuman people mills) are part and parcel of the problems we face. They are thieves in the night, taking their "profits" by gutting the American Dream. They cut their "profits" out of us all in the form of lost careers, lost opportunities, lost hope, lost dignity...all for a greater sum of money they can't spend in two lifetimes.

Let's be clear, making iPhones or iPads in the USA is NOT impossible as was intimated around the time of Steve Jobs demise...its just more expensive, more costly to put that money into the hands of governments and citizens in the form of wages and taxes. Instead of being the richest, most "profitable" corporation in the history of humanity, Apple would have to "settle" for being the engine of economic growth for a large segment of America's 21st century middle class. They would have to provide jobs and careers to thousands of Americans instead of an army of Chinese slaves. They would have to circulate money in American towns and communities instead of pocketing it all and having even bigger trust funds for their great, great grandchildren. In short, they would have to actually give back to the very system that begat them and it would have to set a standard for corporate behavior that would shame the rest of the greed run amok in American businesses. They would have to give up the country club chairmanship and settle for being just another member of a slightly less exclusive and unnecessary club.

Apple makes me sick.
People who use their products should at the very least consider what they are supporting and THEN choose as their conscience allows.

 

dkf

(37,305 posts)
5. Jobs said American regulations made it difficult to build factories fast enough.
Sat Sep 8, 2012, 02:40 PM
Sep 2012

He said the Chinese have an easier time building factories than Americans, who are hampered by “regulations and unnecessary costs.”

http://m.nypost.com/p/news/national/steve_bam_slam_lAtEFW3iqsCQESMjs2NPfI

I am sure you've heard how Apple operates. Apple moves fast. I'm not sure he could execute what he wanted if he did it here.

AdHocSolver

(2,561 posts)
7. So Apple puts profits above the environment and worker safety.
Sat Sep 8, 2012, 09:39 PM
Sep 2012

What else is new?

China is a heavy polluter and we know how they treat their workers (Foxconn).

Jobs was as money grubby as any vulture capitalist.

Parenthetically, the original Mac technology was "invented" at Xerox PARC (Palo Alto Research Center).

n2doc

(47,953 posts)
8. Glad to hear you don't own any smartphones
Sun Sep 9, 2012, 11:23 AM
Sep 2012

or have a computer. After all, everything electronic is made outside of the US, especially smartphones and computers.

Keep up the good non-work!

 

deepika

(11 posts)
9. i phone
Thu Sep 13, 2012, 06:07 AM
Sep 2012

It seems that the company must be making a sizable profit. Let's find out how much revenue Apple is making from the sales of iPhones by looking at the manufacturing costs of its iconic product.

JoeyT

(6,785 posts)
10. The primary difference is how the company puts itself forward.
Fri Sep 14, 2012, 11:25 AM
Sep 2012

If two companies are selling fruit that's soaked in formaldehyde and one is saying "Hey, have some of our shitty poisoned fruit!" or at least avoids mentioning it at all while the other advertises that their fruit is not only wholesome and good, but completely devoid of poison, one isn't necessarily committing a greater offense, but they are going to draw more attention when someone finds out.

Apple isn't any better or worse than any tech company: They all pretty much suck. It's the acting like they're somehow different that calls all the attention to them.

WeekendWarrior

(1,437 posts)
12. This is just plain silly
Fri Sep 14, 2012, 05:07 PM
Sep 2012

I'm no Apple fan, but much of the cost of technology like a smart phone is in the research and development, and getting the best minds working on your product is not cheap. So you can't base cost and profit on the hardware alone.

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