Nope, I am not complaining, I never stated my feelings about the OP's complaint.
I am just pointing out the irony.
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I am just pointing out the irony.
It's the most expensive Iphone and the one with more profit %.
The teardown revealed that the bill of materials for the Iphone XS Max 256gb is 440. Of course we think that it's expensive .
And It's a forum , remember. LOL
The teardown revealed that the bill of materials for the Iphone XS Max 256gb is 440. Of course we think that it's expensive .
And It's a forum , remember. LOL
Lets not let facts get in the way of propoganda of "Apple is just ripping people off these days" and "buh buh they so GREEDY!!"
iPhne 3GS gross profit margin in 2009- 59% average over storage sizes
iPhone 4 gross profit margin in 2010- 58%
iPhpne 8 gross profit margin in 2017- 59%
iPhone X gross profit margin in 2017- 64%
A whole 5-6% increase over 7-8 years max..
Or https://www.statista.com/statistics/666993/iphone-estimated-gross-margins/
iPhne 3GS gross profit margin in 2009- 59% average over storage sizes
iPhone 4 gross profit margin in 2010- 58%
iPhpne 8 gross profit margin in 2017- 59%
iPhone X gross profit margin in 2017- 64%
A whole 5-6% increase over 7-8 years max..
Or https://www.statista.com/statistics/666993/iphone-estimated-gross-margins/
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Because then he’ll be labeled as a fanboi, suffering from denial or an apologist.
It is ONLY ridiculous amount of pricing when a person values the dollar more than the product.
Very similar to food pricing.
House pricing.
Vehicle pricing.
Clothing pricing.
Medicine pricing.
Fuel pricing.
Land pricing.
Every "thing" sold has a version of it priced where a smaller number of people choose to and have the ability to purchase whatever "it" is.
And with every "thing" there are people that will overextend themselves financially and those that won't. Sometimes it comes back to bite them, sometimes not but it isn't a companies fault when they offer a luxury item and then the person chooses that item over another one on purpose.
The bill of materials is one thing.
There are a lot of people on the other side of the bill of material that are making things happen.
I can go to a restaurant and order a steak dinner and break down the bill of fare.
$60 for a 28 ounce ribeye.
Salad - lettuce 75 cents, tomatoes $80 cents, onion 5 cents, cheese 40 cents, egg 45 cents, dressing 30 cents.
Potato - $2 loaded $3.50
Steak - 25
So maybe $34. But does that include all the additional costs of operations?
Apple is making a ton of money but I don’t think the bill of materials is necessarily the true profit margin.
I spend more on at Dunkin’ in two years than the cost of an iPhone. I surely can make coffee at home for a lot less. My point here is many people are not aware of how they spend their money. Is $1000 a lot for a phone? Yes.
I sold phones for a while. I can say that outside of the first 30 days, the vast majority of upgraders were those having phones at least two generations old.
I mean it’s not like we don’t have other options. Apple isn’t a monopolist.
If this were true (people being left out of the smartphone market because there is one company so powerful it can dictate prices for the entire market), then competition is flawed and smartphone prices should be regulated. Isn’t this the logical conclusion?
This is in I believe Australian money, but the % profit line in gray is all we care about.
Proft margins are no more than any other year; not even the highest in iPhone history. The notion all of the sudden "Apple is ripping people off" suddenly is simply a fallacy by the facts.
Cost to make and the tech inside has gone up, thus so does price. If Apple was suddenly ripping people off for profits this graph would look very different.
I have no problem with their prices. Sure I would love to see them lower. But I don’t mind paying them as their ROI is worth it to me.This is in I believe Australian money, but the % profit line in gray is all we care about.
Proft margins are no more than any other year; not even the highest in iPhone history. The notion all of the sudden "Apple is ripping people off" suddenly is simply a fallacy by the facts.
Cost to make and the tech inside has gone up, thus so does price. If Apple was suddenly ripping people off for profits this graph would look very different.
As a windows user I purchased a 15” 2017 MBP, love it.
iPhone and iPad. Love them too.
I have friends with other than iPhones. We bust each others chops all the time. We like share features about each of our phones that are touted yet never used.
In the end texting, email, viewing videos, navigation, and email are the main purpose of the devices. Oh yeah and their a phone.
We all take equally good pictures as well as bad ones.
In the end the beer tastes all the same
How is a phone a necessity? You can get a phone that makes calls for way less than the cost of an iPhone if that’s what you need. What about the new iPhones is a necessity?
In the day and age that we live phones are necessity technological tool for our daily lives, they are the center of our entertainment and help us to keep in contact with each other. If you see the iPhone as a luxury item with an OS only available for the rich elite, then I really have no more will to keep the conversation with you.
An iPhone X is very much a luxury item. And Apple is priced at the pointier end of the price scale, yes.
But the iPhone 7 - a great phone mind you - costs $449!!!!
And there are loads of android options with immense displays for $300 and whatnot.
I understand what are you saying but:
ALWAYS were people on the other side. That don't explain the higher prices each year. And for example a faster 7nm processor is cheaper to produce than and old one. They aren't putting a 7nm processor inside only because it's better for us, it's a win-win.
Let's talk about the storage. They are charging the same, but we both know that NVMe (512gb) 2 years ago costed you like 500 dollars, now you can get 512gb for under 200. But Apple keeps charging 150 for each storage option. You can't validate that pricing, if WE ALL know that the storage is getting faster and cheaper each year.
Or if you want to keep charging that plus, upgrade the storage options at least.
It's my thought, anyway i could buy it if i think is good enough. But this time i don't think so.
Of course i hope you all enjoy the phone, but that doesn't make the Iphone cheap.
Ew.
The iPhone is a necessity?
Like this is a for real statement with honest belief behind it??
That can't be right. That just can't be right at all.
Do you read? I never specified iPhone but a phone in general.
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So all that talk about the ecosystem, support, ease of use was false? That’s sad.
Dunkin goes up every year.
Prices of new cars bump up every year.
For the most part my salary goes up every year.
Cost of food and so on.
You want to talk about things going up, look at rents and the cost of homes in and around Boston.
The Xs is at the same starting price point as the X. So essentially the X series did not go up.
I think you have proven my point for me. Phones as the center of ENTERTAINMENT (your words), not NECESSITY. There are plenty of options at all different price points that will allow you to keep in contact with people.
Do you read? I never specified iPhone but a phone in general.
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So all that talk about the ecosystem, support, ease of use was false? That’s sad.
Now you’re just tap dancing around. The discussion was the cost of the iPhone and you argued that it was a necessity. If a phone is a necessity, in general, there are lots of affordable options.
If you think I'm dancing around then you clearly lack comprehension skills, for I always heard about how iPhones have the most secure and best OS, support and easy of use, trying to prove your point you try to lure people to Apple with those arguments and now trying to prove your false point of phones being a fancy luxury item you come up with arguments like there are cheaper options? The more you talk the more we can tell you agree that iPhones are meant for rich elites, which isn't true but unfortunately with these high prices it's starting to be. Don't come up with cheaper alternative excuses because you use that argument to make seem like phones are not a necessity nowadays which isn't true. Try to stay without a phone for a month and tell me again how phones are luxury items.
Seeing as though you were referencing the iPhone in the very next sentence after saying "phone", it is kind if hard not to conclude that someone is speaking about the iPhone, in a thread about Apple, on an Apple forum.Do you read? I never specified iPhone but a phone in general.
So even after that, let's go with some form of smartphone.
It still is no necessity to life and business and the only caveat to that is that your business actual revolves around building things for a smartphone. Be it a case, an app, or what have you.
It is a nice thing to have but rest assured I can still be entertained, keep in contact with someone, use a real map to get somewhere, run several businesses, order food, play games and many more things without any form of smartphone at all.
There's a reason why this site is called Macrumors and not FoodShelterAndSanitationrumors. We're all here to talk about "first world problems".
I think the perception is developing that, even though Apple have always been premium-priced, in the last few years they've been turning the knob up to 11.
The original iPhone was a "first of its kind" product, almost a pilot program - early adopters always pay through the nose. There was nothing remotely like it available. The iPhone 3G was half the price (see https://en.wikipedia.org/wiki/IPhone#History_and_availability). Also, over the years, Android has become a viable option - maybe inferior, but at least comparable and far more affordable so there's no longer such a night-and-day justification for a huge premium.
Since 2013 there has been an affordable option at the $400 mark which was usually only a year behind the 'flagship' model - but that was dropped this year - and the "affordable" $750 iPhone XR has been (probably deliberately) held back to sell more expensive models.
Except the prices of computers and consumer electronics such as phones have been bucking that trend since the 1980s, which has shaped people's expectations. Even if you didn't know anything about inflation or the improvements of technology, the prices in a 1980s computer magazine would look a bit steep by modern standards, while the cars in a motoring magazine would sound like back-of-the-sofa money... then you factor in that modern technology is several orders of magnitude more powerful for a fraction of the inflation-adjusted price...
Of course, the only reason that worked was that (a) the volume of sales was going up dramatically, and electronics is far cheaper to mass produce in vast quantities and (b) because technology was continually getting more powerful, everything was automatically obsolete after 18 months, so the market never got "saturated".
Now, tech development is slowing down* , the market is getting saturated, so inflation is starting to bite.
However, the problem on top of this is that tech producers have enjoyed decades of explosive growth, and the stock markets expect that growth to continue - so what you have is companies like Apple trying to drive up their profit margins to ensure that their revenue continues to rise rapidly despite flat or falling sales. Their bumper results last quarter were bolstered because sales were slightly better than predicted - but the growth in revenue was still disproportionate to the growth in sales.
* The 7 years between 1977 and 1984 and saw the Apple II turn into the Mac, which offered a completely different personal computing paradigm (and a 16/32-bit 68000 processor that made the Apple II's 6502 look like a washing machine controller). 2010-2017 saw the iPhone 4 turn into the iPhone X, which had a bigger screen and better camera (OK, that's underplaying it a bit, but we're stall talking evolution c.f. revolution).
"The point is the crazy high prices we are coming to, phones nowadays are actually a necessity and I don’t see a phone as a luxury item as a Rolex since it can be considered as fashion."
"In the day and age that we live phones are necessity technological tool for our daily lives"
"Not everyone is able to afford such high prices, so people will be left out of the smartphone market for such greedy pricing practices?"
Don't tell me an iPhone can't be considered a phone or smartphone? You guys are just taking my arguments your own way, you're only seeing what you want to see...
Of course . But it's the same price with 64gb, and what i am telling is that today 64gb it's a lot cheaper than last year.
And look what i said before with this example:
Iphone Xs Max 64gb-$1000
Iphone Xs Max 512-$1450
So, you see that they are charging $450 for 512gb that cost exact the same to produce, except for the storage . They are charging $1 dolar for each Gb almost , that is expensive.
Like i said before , this is not like a car it's a component that GETS CHEAPER each year.