General Discussion

FarCenter

(19,429 posts)

7. iPhone 4S cost of parts, $187.90, manufacturing $8.00, gross margin $453.10

Wed Jul 11, 2012, 01:47 PM

Jul 2012

The gross margin covers the costs of transportation from the factory, warehousing, distribution, marketing, advertizing, R&D, management, HR, contracting, purchasing, etc. Yes, they do make a profit, but the $453 supports a lot of US jobs that wouldn't exist if they had to spend more than $8 on manufacturing. The parts are all from Asia anyway. Most can't be profitably manufactured in the US by parts suppliers, and some, like the display, aren't available from US manufactures because most of the patents on the displays and how to make them are held by Asian companies.

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Highlight:

Andrea Greenspan: "Sending jobs overseas can make a stronger company and more hiring at home" [View all] Amerigo Vespucci Jul 2012 OP

Convincing I am sure. gordianot Jul 2012 #1

Her husband would agree. BumRushDaShow Jul 2012 #2

Apple is a good example; if they manufactured in the US, they'd have been priced too high to grow. FarCenter Jul 2012 #3

You're kidding me, right? That's the worst example EVER. Zalatix Jul 2012 #5

iPhone 4S cost of parts, $187.90, manufacturing $8.00, gross margin $453.10 FarCenter Jul 2012 #7

Consider the amount of time in engineering and software development alone Auggie Jul 2012 #8

On the other hand, their signature iPad... Zalatix Jul 2012 #31

Ka-Ching! Mimosa Jul 2012 #28

Maybe Some Things Should Be Priced Higher Yavin4 Jul 2012 #18

Bingo!!! progressivebydesign Jul 2012 #34

When The Emphasis Is On Making Products "Affordable".... Yavin4 Jul 2012 #44

Here's an economics professor in Japan who disagrees. moondust Jul 2012 #30

The labor cost differential is higher and there would be productivity and quality problems as well. FarCenter Jul 2012 #32

you wouldn't be able to work them like dogs, and pay them a pittance. you mean. n/t progressivebydesign Jul 2012 #35

Yes, and even if you could, the scrappage rate and warranty costs would be too high. FarCenter Jul 2012 #39

Like A Snake Eating Its Tail, Sir The Magistrate Jul 2012 #4

She was shilling for the repubs even more than usual... Spazito Jul 2012 #6

Like her MSNBC soliloquy ... Ship of Fools Jul 2012 #9

So this is the new spin they've come up with? Proud Liberal Dem Jul 2012 #10

If we outsource a 100 quality jobs, MattBaggins Jul 2012 #13

Oh I'm very excited Proud Liberal Dem Jul 2012 #21

LOL...n/t whathehell Jul 2012 #26

REALLY? HughBeaumont Jul 2012 #11

Economic traitor. AnotherMcIntosh Jul 2012 #12

Andrea Greenspan is running a outsourced free coolaid stand. L0oniX Jul 2012 #14

Well I got the Chamber's material on this nadinbrzezinski Jul 2012 #15

How's that working the last 5 years LynneSin Jul 2012 #16

If she and her husband were to be sent overseas Autumn Jul 2012 #17

that may have been true a decade ago BOG PERSON Jul 2012 #19

Not too hard to tell who she'll be voting for in November aint_no_life_nowhere Jul 2012 #20

Funny how the people who say these things... JHB Jul 2012 #22

In some ways yes 4th law of robotics Jul 2012 #23

It's a long shot, and it is not the "norm." Amerigo Vespucci Jul 2012 #25

It *has* worked 4th law of robotics Jul 2012 #46

No, we really haven't done alright. progressivebydesign Jul 2012 #36

I can tell you aren't froim the south RedRocco Jul 2012 #38

Sigh, yes there are some textile mills in the US 4th law of robotics Jul 2012 #45

Riiiight. Brigid Jul 2012 #24

Andrea Greenspan is an Offshore Whore Skittles Jul 2012 #27

BBbbwwwaaaa, Ha! ha! ha, aaaaaaaARGH!!!! That's more hiring because all of the jobs here are patrice Jul 2012 #29

Tee-hee... sfpcjock Jul 2012 #33

She's so full of shit. progressivebydesign Jul 2012 #37

Idiot Marrah_G Jul 2012 #40

Ah, Mrs. Greenspan Canuckistanian Jul 2012 #41

She knows 'cause her husband told her so Motown_Johnny Jul 2012 #42

What the hell are these people smoking?? Trailrider1951 Jul 2012 #43