Quote:
Originally Posted by Dave_S
All of those factors affect ALL phone manufacturers, not just Apple. That should mean that a manufacturing profit comparison is reasonably fair since all the hidden cost are born just the same by all the competing companies. In fact, Apple has a somewhat unfair advantage in the factors before and after manufacturing because they a have a lot of clout in forcing their way on vendors, dealers and service providers.
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Yes, however I was disputing this part of the original article
Quote:
we reach a total of about £176 to manufacture an iPhone that retails at £499. This represents a profit for Apple of £323 per iPhone.
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emphasis mine.
Assuming the BOM costing is true as well as the "labour costs, transportation, storage and warranty expenses", that still does not cover all costs which have to be factored into the final price of any product before you could work out a potential profit margin.
I've no doubt Apple make a good profit on the hardware they sell, especially on Macs. However £323 per phone when there's other costs to factor in seems highly unlikely to me.