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Old 09-22-2010, 12:43 AM   #39
mgmueller
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Posts: 3,308
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Join Date: Nov 2008
Location: Augsburg (near Munich), Germany
Device: 26 Readers, 44 Tablets
Quote:
Originally Posted by tubemonkey View Post
Remember, the 32GB iPhone 4 costs Apple about $215 to manufacture. The iPod touch is even less, since it has cheaper and fewer features.

So if Apple can do it, then so can the rest.
BTW: I'm always sceptic about such figures. $ 215 may be the manufacturing costs. But do they include R&D? If I compare Apple to my employer, their R&D spent should be in the range of $ 4 billion (!!) per year. Spread this over their number of units.
And their overhead costs (sales, administration, marketing, ...) will be in the range of 15% to 20%. And taxes. And...
Hardware manufacturers usually need Gross Margins in the range of 40% to 50%, to end up with about 5% EBIT.

Last edited by mgmueller; 09-22-2010 at 12:49 AM.
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