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Old 09-10-2012, 10:46 AM   #2
murraypaul
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Quote:
According to IHS iSuppli, that iPhone in your hand cost Apple $188 to manufacture.
[...]
That's because the retail price of an iPhone is $700.

That's right; Apple is making a cool $512 on each and every iPhone it sells. That's a 272% markup.
I wish people like the writer of the ezinearticles article would stop quoting iSuppi figures like this, or at least take ten seconds to see if what they have written makes a blind bit of sense.
Going by this you are forced to believe that manufacturing is the only thing in the world that actually costs money. Research and design is free. Packaging is free. Distribution and warehousing are free. Retail staff work for no money. There is no such thing as corporate overhead. Malls just give away floor space to anyone who wants it. Government don't want any taxes.
And it isn't just Apple, for any new release the same 'analysis' is done. I'm sure in the next few days we'll be told how much Amazon is/isn't making on the new Fire models, and it will be just as useless as this article.
(Having said all that, the iPhone is still really expensive anyway)
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