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$649 iPhone 5s Costs Apple $199
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JoshuaS993
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JoshuaS993,
User Rank: Apprentice
9/24/2013 | 8:05:35 PM
re: $649 iPhone 5s Costs Apple $199
The iPhone is not designed for executives you moron.
JoshuaS993
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JoshuaS993,
User Rank: Apprentice
9/24/2013 | 8:03:42 PM
re: $649 iPhone 5s Costs Apple $199
You have no idea what you're talking about. Apple spent $3.4 billion on research and development during its last fiscal year. Google spent $6 billion and Microsoft spend $9.8 billion. All of those numbers are significant.
Frank_Truth
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Frank_Truth,
User Rank: Apprentice
9/24/2013 | 7:56:02 PM
re: $649 iPhone 5s Costs Apple $199
Sadly, Apple does not spend that much for R&D anymore. Other companies like Microsoft and Google spend over 10% of their profits for R&D. Apple spends virtually nothing. They are now content to milk their existing consumer base.
Frank_Truth
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Frank_Truth,
User Rank: Apprentice
9/24/2013 | 7:45:07 PM
re: $649 iPhone 5s Costs Apple $199
The bottom line is this. I wouldn't care if the Apple phone cost $0.00 to manufacture. The sad fact here is Apple has refused to use its windfall profits from the iPhone to make it better, and deliver more value. Instead Apple has chose to buy back their stock. Shareholders would have been better served if Apple used their cash to make the iPhone a better product. There are so many things Apple could easily have improved. And iOS7 is a clownish design was design for bubblegum-chewing, unicorn-loving little girls, not a classy, elegant design for executives.

Actually iOS7 looks like it was designed by a male hairdresser using MS Paint for flaming queens, and Prince. Can't look at iOS 7 and not think of Raspberry Beret or the psychedelic 60's.

Look at the new camera icon and the old camera icon.

There are B&W icons, lots of icons with white backgrounds, then lots of icons with green backgrounds.

Apple chose a font with thin, hard to read characters on a phone that is already smallest in the smart phone universe.

The new flat design looks like Apple is following Android and Windows 8 tiles. The real world is 3-D. The engineers who designed the new interface think in abstract symbols not 3-D images.

Steve Job's skeuomorphism was classy, not cheesy or cheap. There is reason expensive watches are analog, not digital.

Finally, Apple should have come out with two different size phone for people who have different size hands. A adult male has much larger hands than a female tween. One size does not fit all. iPhone owners are leaving Apple in droves permanently because they want a bigger phone, even though there are many Apple customers perfectly happy with the phone size the way it is.

Samsung makes many different size phones. Moreover, the IPhone has fallen behind in many important areas. The Sony phone is more water resistant. The Lumina has a much better camera. The Motorola Droid Maxx has much better battery life even though it has a much bigger screen, and it is more durable.

There are still areas where the iPhone is ahead of its competition, but those areas are shrinking as Apple has been too slow in improving the iPhone.

The iPhone should have NFC (Near field Communication), a consumer replaceable battery, and consumer upgradeable memory.

Some one wrote me consumers can replace the battery on their own, if they take a special course in cell phone repair, and buy special tools. This is the kind of insane nitpicking people have with my messages.

I am an iPhone owner, and have always appreciated Apple's products. But it looks to me like Apple is lost. They should not have fired Scott Forestall. Apple is being run by a supply chain guy, not a visionary who understands what consumers want, and it shows.

Don't be fooled by the fact the Apple 5s sold so many units and sold out so fast. Apple is still coasting. Apple still has a lot of momentum from the iPhone 4. But eventually the Apple will fall back down to Earth like Blackberry, AOL, Nokia, and Motorola.

Gizmodo showed the 5 takes better pictures than the 5s even though the 5s has better specs. Gizmodo proved this by taking identical photographs with the 5 and 5s. Fair Trade showed the 5s is more likely to stop working after a fall. And Consumer Reports showed the iPhone in general has poorer phone call reception than most smart phones.
Ian Page
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Ian Page,
User Rank: Apprentice
9/24/2013 | 7:40:11 PM
re: $649 iPhone 5s Costs Apple $199
Why in heaven's name do you think your "wild guess" is more credible than the detailed breakdown and costing presented here by people who know what they're doing, and obviously do it a lot?
ANON1252009151911
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ANON1252009151911,
User Rank: Apprentice
9/24/2013 | 7:33:56 PM
re: $649 iPhone 5s Costs Apple $199
People will twist themselves into knots to justify Apple's prices. Seriously, what makes Apple so special that they have an outsized margin, yet they're the largest company on the planet? Talk about math, this just doesn't add up.
ANON1252009151911
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ANON1252009151911,
User Rank: Apprentice
9/24/2013 | 7:30:55 PM
re: $649 iPhone 5s Costs Apple $199
Each 64GB version sold could pay for both the manufacture AND purchase of a new 16GB. I sincerely doubt that profit margin is due to overhead.
ANON1252009151911
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ANON1252009151911,
User Rank: Apprentice
9/24/2013 | 7:29:44 PM
re: $649 iPhone 5s Costs Apple $199
It's 4.25x the manufacturing cost. People are fools.
TelsaI845
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TelsaI845,
User Rank: Apprentice
9/24/2013 | 7:27:53 PM
re: $649 iPhone 5s Costs Apple $199
Only 3 times? No way. A wild guess would put the cost at under a $100 or less. That would put the markup at a more realistic 6 and 8 times the cost, 10 times the cost would be more like it.
JoshuaS993
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JoshuaS993,
User Rank: Apprentice
9/24/2013 | 7:00:27 PM
re: $649 iPhone 5s Costs Apple $199
The article should be titled "$649 iPhone 5s Costs Apple $199 to manufacture." By including the line "It's a shame Apple is only marking the price up by (a minimum of) 326%." you show how biased you are. The cost to manufacture the phone doesn't include any of the other costs such as R&D and marketing - which are significant. To not even mention these shows that you are merely looking for clicks, and couldn't care less about accurate journalism. Apple's gross margins are around 30-35% over recent quarters. They'd love your math to be the reality - but it simply isn't.
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