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What does amaze me is the individual prices of the parts.... they seem far cheaper then a say a cupbord considering the technology that goes into them.
Not a particularly high mark-up when you consider VAT and all the other costs/cuts involved in getting a unit to an end consumer. Prior to reading this article, if you had asked me to guess how much it's raw materials cost to assemble I'd have come in at between £50-75.
OK, OK. It was a major fail, and i have been torn apart by you lot, now leave me alone
Originally Posted by RobsyUK
What does amaze me is the individual prices of the parts.... they seem far cheaper then a say a cupbord considering the technology that goes into them.
As with everything, the money is in the research and development. materials will be cheap, so will producing the parts, but to get each part to a finished product is where the money is.
What does amaze me is the individual prices of the parts.... they seem far cheaper then a say a cupbord considering the technology that goes into them.
The cost of the technology design is amortised over millions of units.
A cupboard is priced on raw material of which there is a lot.
A piece of tech is usually relatively low cost in terms of raw materials (except for the blood minerals which are usually in minute quantities), the cost is in the design.
Manufacturing is the replication of design at marginal cost and the marginal cost falls dramatically given the numbers involved.
Well I laughed when I saw it
I seem to remember that that breakdown of the 4 had it as a very expensive build, so this is interesting imo.
Still, premium price for a premium product they say
Well I laughed when I saw it
I seem to remember that that breakdown of the 4 had it as a very expensive build, so this is interesting imo.
Still, premium price for a premium product they say
I can always count on Snazy to be on my side when it comes to phones
People are missing the point here. It's worth whatever people perceive it to be, supply and demand and all that. If people will pay £500, £600, £700 for it then let them - the market sets the price. If Apple genuinely 'overpriced' it then the shelves would be full of these phones and guess what, they're not! I've done various 'sales' courses over the years and the best thing I've learnt (in my industry) is not to try and set a profit of 'cost + X%', but to see what the customer values the item at. In this case it's a lot more than a few percent. Good on Apple for producing a desirable product.