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Geek Culture / Iphone only costs $250 to make (£125)

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5867Dude
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Posted: 19th Jan 2008 21:48
Apple is ripping off its customers. I mean appaently their touchscreen only costs $33 to make (£17)
Link:
http://gizmodo.com/gadgets/cellphones/iphone-only-costs-250-to-make-rest-of-price-is-fanboy-tax-229664.php


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Venge
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Posted: 19th Jan 2008 21:53
Whoa! Companies are actually selling products for more than what it costs to make them???? This is an outrage!

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5867Dude
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Posted: 19th Jan 2008 21:59
Quote: "Whoa! Companies are actually selling products for more than what it costs to make them???? This is an outrage!"

Stop being a jerk-It's just that its quite a bit less than how much it costs. I mean its at least $250 difference which is quite a bit.


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Pus In Boots
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Posted: 19th Jan 2008 22:01
That's how it is. All companies do this. And they will continue to do this. That's just the corporate way.

Jeku
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Posted: 19th Jan 2008 22:06
Quote: "Stop being a jerk-It's just that its quite a bit less than how much it costs. I mean its at least $250 difference which is quite a bit."


Some products are marked up by over 1000%, and people pay it. It's a good job for any company to sell something marked up like that, if they can do it. It's called business.


5Louiz
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Posted: 19th Jan 2008 22:19 Edited at: 19th Jan 2008 22:22
Indeed. When you sell this kind of product you charge for:

1. Hardware's coast;
2. Softwares' coast;
3. Design. An additional tax can be charged because of that.

There are permanent employees working on the product, a tax must to be paid to the union...

Agent Dink
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Posted: 19th Jan 2008 22:31
Not to mention that sometimes there is markup in your local shop too. Apple might be making 70$ less on every phone that is sold because that's what the shop makes to sell it.

I have no clue if this is true for the cell phone business but with other products this is true.

5867Dude
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Posted: 19th Jan 2008 23:23
True

[Off Topic]
Jeku-Or any other mod,
could you change my name to 5867Dude as i'm known as that everywhere else
[/Off Topic]


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NeX the Fairly Fast Ferret
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Posted: 19th Jan 2008 23:52
That's actually quite expensive to produce. Everything costs a few quid to make, but £125 is a lot more than I'd expect.

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IanM
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Posted: 20th Jan 2008 01:09
Quote: "Indeed. When you sell this kind of product you charge for:"

...
and:
- Assembly
- Transport
- Insurance
- Wholesale mark-up
- Retail mark-up
- Shrinkage
- Breakages

Actually, if that's the cost of the parts, the UK retail price isn't bad at all.

What *is* bad is people thinking it's a rip-off - haven't they got any idea of how much it costs to produce something and ship it half-way around the world to their local stores?

BiggAdd
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Posted: 20th Jan 2008 13:24
If Apple were only a small company, you would be paying a lot more for it.

5Louiz
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Posted: 20th Jan 2008 17:32
Quote: "
and:
- Assembly
- Transport
- Insurance
- Wholesale mark-up
- Retail mark-up
- Shrinkage
- Breakages
"


Ouch!! Laughing out loud. IPhone is definitely cheap.


Quote: "If Apple were only a small company, you would be paying a lot more for it."


Also, if you lived in a country like Brazil, which does not produce this kind of device, you would have to pay 60% over its cost to the nation's piggy. I can find the IPhone for the minimum of 450 US dollars (illegally imported 4GB version) and maximum of 1300 (8GB version from legally smart sellers).

5867Dude
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Posted: 21st Jan 2008 08:41
For us in the UK we have to pay £269 for the iPhone and then £35 a month for 18 month's contract so the total cost of the iPhone for us is £899 ($1800 US Dollars)


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Agent Dink
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Posted: 21st Jan 2008 08:57
Quote: "For us in the UK we have to pay £269 for the iPhone and then £35 a month for 18 month's contract so the total cost of the iPhone for us is £899 ($1800 US Dollars)"


That's completely your own choice Don't go blaming Apple when you are the one who got suckered into all the madness

The iPhone is really nice though. However... just because it browses the internet in a pretty way doesn't make it worth all that money. I can see it as being handy for some people -- many people, but it's too rich for my blood. I don't need it. My laptop cost far less than that 18 month service plan and I can do most anything on it ^_^

El Goorf
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Posted: 21st Jan 2008 10:02
i toyed the the iphone at a shop while waiting for a friend to buy a new phone, was very nice, but i cant see myself needing it for that money.

i dont see what the alarm is though... its not rare for production costs to only meet 50% of market price for any good, not just electronics, if not then even less.

we ppl in the coding industry know that. software that sells electronically, assuming the coder didnt employ anyone to make it, and doesnt have to pay any liscensing costs, the only cost to him is renting the server customers buy from him, hence if it's a good software, selling for say £20 per serial number, after the first sale, 100% of each sale afterwards is profit!

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Digital Awakening
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Posted: 21st Jan 2008 11:02
Nobody here have even mentioned the cost for facilities, marketing and research as well as all staff that don't generate any income but is needed anyway.

Included in this price however is software and manufacturing costs.

It's not like Apple is getting insanely rich. If they would ever launch a product that they have invested a lot of time and money on that actually fails to sell, they might actually have to close down.

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Seppuku Arts
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Posted: 21st Jan 2008 14:41
Quote: "For us in the UK we have to pay £269 for the iPhone and then £35 a month for 18 month's contract so the total cost of the iPhone for us is £899 ($1800 US Dollars)"


Not if you unlock your iPhone, then you can use your Pay as you go sim card, though the iPod is meant to be very fussy now when it comes to unlocking (The first lot to be sold weren't people were unlocking them and putting them onto their one networks, lets be honest O2 in the UK are pains in the rear when it comes to contract, my brother has a really awful user experience with them. Hence being a Mac fanboy and an owner of the iPhone it was painful to their UK network is O2.)


As for costs, it seems Apple seem to try and keep their products cheap, but because they very peculiar about the quality and type of hardware they use and put a lot of time and effort in to the design and all of that. Which is all expensive. Then face the criticism that they're over priced and that PCs are cheaper. People who say 'they're over priced' forget the quality that's gone into making and how solidly they've made the product.

Apple just spend more, just like a Gibson Les Paul guitar is more expensive to make than the Epiphone Les Paul, both guitars are the same (heck, made by the same people) but one costs more due to the quality, time, effort and money put into the guitar. And it shows.

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GatorHex
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Posted: 21st Jan 2008 14:43
Would be nice if they could spare $5 to sort out video recording on it

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5867Dude
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Posted: 21st Jan 2008 19:07
But at the end of the day i'll never get a iPhone
Instead I'm getting a cheap K550i!



Was Cool Kid
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Posted: 24th Jan 2008 21:09 Edited at: 24th Jan 2008 21:20
@5867Dude: that's not too bad... my phone's a Sony Ericsson v600i covered in PVA'd on glitter with a flower sticker and something else on... Don't worry though the glitter's starting to peel and look even more tacky... I wish I hadn't leant it to one of my mate's girlfriends for an evening


EDIT: And everyone above's right that site is complete ~~~~~... They seem to think you should charge exactly the cost of the components, and that no money should go to the designers, the customer assistence/support staff, the people actually manufacturing it, the people shipping it, the shops... Basically it's a pile of rubbish, they've just got their numbers somehow and started moaning, without even thinking about what they're saying. Along the same lines; 40 quid for a computer game? But surely blank discs are about 20p each when you buy them in bulk, therefore there's one person sitting at home earning 99.5% of the money themselves on each disc you buy. On the other hand, to make a CD, you need to get all the instruments and recording equipment, therefore each CD should cost tens of thousands of pounds minimum.

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5867Dude
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Posted: 24th Jan 2008 22:02
I'm now getting instead of a K550i a K510i
Pic:



Was Cool Kid
Virtual X
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Posted: 26th Jan 2008 17:20
If people stopped buying their rubbish, they would have to reduce the price significantly!
Roxas
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Posted: 26th Jan 2008 17:40
Why there is 'only' in title? I think it should be "Iphone costs too much" ?


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Seppuku Arts
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Posted: 26th Jan 2008 18:08
Quote: "If people stopped buying their rubbish, they would have to reduce the price significantly!"


Then lose money and make the product not worth making. 'Rubbish' isn't a word I'd use to describe their products.

Quote: "Why there is 'only' in title? I think it should be "Iphone costs too much" ?"


When the customers are practically ripping them off, remember $250 is only the cost of the parts...and that's a lot of money as we have gathered to be spending on parts. Remember making and selling a product and everything around it costs a lot more...from what I see, Apple don't put a high profit margin from what they spend and what they get. Compared to its competitors it's expensive, but on its own, it's cheap.

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Digital Awakening
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Posted: 26th Jan 2008 18:14
Quote: "remember $250 is only the cost of the parts"


No, manufacturing is included in that.

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Roxas
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Posted: 26th Jan 2008 18:54
But still.. Who the hell spends so much on Phone!? The only thing you need is to ring and text.. and if ppl needs then camera would be good too.. But IMO i would buy good camera.


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AlanC
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Posted: 26th Jan 2008 19:12
Quote: "If people stopped buying their rubbish, they would have to reduce the price significantly!"


Rubbish? You must hate Ipods too.

Digital Awakening
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Posted: 26th Jan 2008 19:18
Quote: "But still.. Who the hell spends so much on Phone!? The only thing you need is to ring and text.. and if ppl needs then camera would be good too.. But IMO i would buy good camera."


I use my phone (SE W710i) to listen to music when I'm on a buss. It also got a step counter which I enjoy using since I walk around a lot. I would like to play games on it but games for mobiles usually suck. I don't use the camera much because it's not very good.

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Roxas
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Posted: 26th Jan 2008 19:24
Well mp3 is only good thing But i usually listen them with DS even my Sony Ericson has mp3!


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Digital Awakening
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Posted: 26th Jan 2008 19:39
I wouldn't mind loading up a portable movie player with anime or a movie. Even better then music on a long trip.

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Roxas
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Posted: 26th Jan 2008 19:53
Quote: "I wouldn't mind loading up a portable movie player with anime or a movie. Even better then music on a long trip."


Phone monitor too small for movies :/ Ill use DS


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NeX the Fairly Fast Ferret
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Posted: 26th Jan 2008 20:17
Erm... the iPhone has a much bigger screen than the DS. Only good thing about it though. I saw someone drop one the other day, and it forgot everything!

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Roxas
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Posted: 27th Jan 2008 20:00
Quote: "Erm... the iPhone has a much bigger screen than the DS. Only good thing about it though. I saw someone drop one the other day, and it forgot everything!"


I looked some youtube videos.. Dont think so :/


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NeX the Fairly Fast Ferret
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Posted: 27th Jan 2008 21:09
You've obviously never seen one in real life, then. I'd say it's more than twice the size of the DS display. It's still Apple, though, and therefore still overpriced label rubbish as a result. I'd just rather watch a movie on a small laptop...

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Roxas
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Posted: 27th Jan 2008 21:10
Well then i guess so But still i say that phone is made for ringing and texting.. If you want other media why not buy device made for it? They are usually much better than phone too..


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Virtual X
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Posted: 27th Jan 2008 21:39 Edited at: 27th Jan 2008 21:40
The problem is that if people refused to pay for these items they would have to reduce the price, apple would not lose money, but they wouldn't be as rich as they are now.

It's the people who are willing to camp out over night just to buy a stupid phone who annoy me, they don't NEED it, but idiots like this are willing to pay for it because it's the latest fad!

it's the same with anything, supply and demand! the more people want it, the more they will have to pay for it!

Steve Jobs is just as greedy as Gates!
Roxas
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Posted: 27th Jan 2008 22:00
Bill Gates belongs to those people who makes big donations to charity!
He is not greedy.. Stupid people just makes jokes with him!


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Accoun
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Posted: 27th Jan 2008 22:07
Quote: "Stupid people just makes jokes with him!"

Well, people make jokes of him also because he's founder of microsoft, making windows, that is not-loved-by-everybody, and microsoft copied many of "their" ideas etc.

Make games, not war.
Roxas
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Posted: 27th Jan 2008 22:22
Yes but i mainly meant the jokes how greedy he is..


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Seppuku Arts
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Posted: 27th Jan 2008 23:29
Steve Jobs, like Bill Gates is a business man, they're all out to earn money in the best way possible...and why single them out from other businessmen that do the same? At least Microsoft and Apple are ethical.

The iPhone, may cost $250 to make (even if I was contradicted on the manufacturing point) - think about advertisement, profit, conferences, design, replacing breakages and everything basically a company has to cover around a product. Yes for the average man it's expensive, hence I don't want one. People say 'its an overly featured phone' but to me it's a fancy gadget with phone built in with many other features...if you can afford it and need a device like that, it's handy, if not - then it isn't.

I don't think they're ripping anybody off, nor does Microsoft or anybody like that, it's just Apple spend more, thus they charge more and sometimes the quality shows. (Though with this like the iPhone they're a little delicate)

Though I do suppose also 'brand name' does make things expensive and people do earn more money than they should...I suppose 'extra' profit is handy for a rainy day, after all Microsoft had to bail them out a while back (A rainy day would be if a product fails). The good thing is Apple products have gotten cheaper.

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Jeku
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Posted: 28th Jan 2008 02:26
Apple can slap any price on their items and the cult of Mac members will buy them. Then, after a short wait (~6 months) the price will be reduced for normal customers.


Izzy545
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Posted: 28th Jan 2008 07:27
Quote: "The problem is that if people refused to pay for these items they would have to reduce the price, apple would not lose money, but they wouldn't be as rich as they are now."


I like how you're mad at Apple for turning a profit, and getting rich off their products which most people apparently seem to enjoy.

I suppose if you made a brand name that was making you rich and people were willing to pay more for it, you'd turn down the extra money, just because you didn't want to get too rich?

Virtual X
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Posted: 28th Jan 2008 20:08 Edited at: 28th Jan 2008 20:09
That's exactly right Izzy! I'll make it affordable for everyone to buy, obviously business is about making a profit but the amount some companies charge for their products is damn right disgusting! I value honesty when it comes to business, unfortunately money brings out the worst in some people! I've always maintained the promise that if I become rich, I would change peoples lives (who deserve it) for the better!!

Roxas, Bill Gates donates to charity, that's correct, but it's a front to make him look caring, if you give to charity you get tax breaks!!!! i.e. pay less tax! it's a win, win situation for him really! people with money always want MORE.
bitJericho
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Posted: 28th Jan 2008 21:20
Quote: "That's exactly right Izzy! I'll make it affordable for everyone to buy, obviously business is about making a profit but the amount some companies charge for their products is damn right disgusting! I value honesty when it comes to business, unfortunately money brings out the worst in some people! I've always maintained the promise that if I become rich, I would change peoples lives (who deserve it) for the better!!"


You're just full of yourself.

1. IF you ever get around to running a real business, you will charge as much as you can get.
2. Apple makes money *because* they're expensive. People inherently believe the more you pay, the better the product. The iphone by far isn't the best product on the market, (it's the most expensive). Go ask anybody what the best cell phone on the market is, they'll say it's the iphone (unless they have a grudge against apple). Maddox pointed out a phone that's much better:

http://www.thebestpageintheuniverse.net/c.cgi?u=iphone

3. Bill Gates doesn't donate for the tax breaks, he'd make way more money just keeping it, you get a tax break for a donation, but you *also spend money giving it away*. Donating 750mil for immunization programs isn't for making 800mil in tax breaks

4. People with money always want MORE? People without money always want more, unless you're mother theresa. Go live homeless for a while and tell me how much money you want. With the money you make, you could probably feed 2 dozen african families. Why are you living in an apartment or house when you can live on the street and donate to Africa to help them live better?

I'll tell you why, cuz you're a greedy American just like the rest of us

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Jeku
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Posted: 28th Jan 2008 21:28 Edited at: 28th Jan 2008 21:29
Quote: "Roxas, Bill Gates donates to charity, that's correct, but it's a front to make him look caring, if you give to charity you get tax breaks!!!! i.e. pay less tax! it's a win, win situation for him really! people with money always want MORE."


Ignorance is bliss, wouldn't you agree, Virtual X?


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