iPhone 15 Pro Models Expected to Be $100 to $200 More Expensive

[SnowCrocodile]

Is the 372 all inclusive? I doubt it, nobody really knows the exact number. However when apple sells hundreds of millions of phones yeah they make a pile of money.

I was involved in product program cost studies at some point in my career. For a major automotive supplier. The unit cost contained everything, including overhead costs that were not directly related to the product. The product managers were basically handed some numbers from global accounting and told to include in program cost calculations. In the end, every penny spent by the corporation was passed on to the active product programs and included in product unit costs. I doubt that Apple, or any product manufacturer, operates any differently. When you sell a range of products, your indirect costs have to be shared between these products and accounted for when establishing unit price, otherwise they are unfunded.

I posted earlier in this thread, that Apple accounted for less than 17% of global phone market by the number of units sold, yet had 75% of all profits (iirc this was in 2022 numbers). This can only happen when there's a large difference between unit cost and price.

 

[I7guy]

I was involved in product program cost studies at some point in my career. For a major automotive supplier. The unit cost contained everything, including overhead costs that were not directly related to the product. The product managers were basically handed some numbers from global accounting and told to include in program cost calculations. In the end, every penny spent by the corporation was passed on to the active product programs and included in product unit costs. I doubt that Apple, or any product manufacturer, operates any differently. When you sell a range of products, your indirect costs have to be shared between these products and accounted for when establishing unit price, otherwise they are unfunded.

I posted earlier in this thread, that Apple accounted for less than 17% of global phone market by the number of units sold, yet had 75% of all profits (iirc this was in 2022 numbers). This can only happen when there's a large difference between unit cost and price.

Gross margin in the iPhone is about 44%. That is not an unreasonable number.

 

[Abazigal]

This can only happen when there's a large difference between unit cost and price.

That and the majority of android handsets barely make any money, apparently.

I think there was one quarter when the iphone actually raked in more than 100% of industry profits. Now that was a funny time.

 

[webkit]

Continuing the discussion on costs, margins, etc., below is an article (can't speak to how accurate it is) that compares production costs and pre-sales tax U.S. retail prices of various phones over the years.

Note that the production costs DO NOT include marketing, research and development, distribution, staff, accessories, packaging, software, etc.

The Real Production Costs of Smartphones Over The Years

Let's check out the list of smartphones with information about production cost (Bill of materials plus manufacturing cost), retail price and profit margin.

www.techwalls.com

 

[beermode]

Yet we'll see people with Pro Ultra phones that are driving around with bald tires. Because they can't "afford" new tires.

Im laughing at people that downvoted this. I'm not wrong.