Apple launched a series IPhone 14 In the month of September 2022, with great features, most of which were exclusive to Pro models only, and that is why there was a strong demand for both the iPhone 14 Pro and Pro Max. However, the company did not raise the prices, as the iPhone 14 Pro Max price is $ 1099. And the question here is, what is the real cost that Apple pays in order to manufacture the iPhone 14 Pro Max, and the amount of profit that it gets from each sale of its latest device?
IPhone 14 Pro Max
A new report from the market research company Counterpoint revealed that the cost of the iPhone 14 Pro Max increased by only 3.4% when compared to the cost of manufacturing the previous version, the iPhone 13 Pro Max, and the market research company relied on calculating the cost of iPhone XNUMX devices. Camel On what is known as, the BoM bill of materials, which is a list of the components and all the parts needed in order to manufacture the iPhone, and according to the report, the iPhone 14 Pro Max has an area of 128 GB, and its manufacturing cost is $ 464, which is a slight increase when compared to the iPhone. iPhone 13 Pro Max, and the main reason for this increase is due to the new 48-megapixel rear camera, in addition to the new screen that works permanently.
Components of the iPhone 14 Pro Max
There are a lot of components that go into manufacturing the iPhone, and this includes the processor, camera, screen, and others, and of course Apple does not disclose the cost of these parts, but the market research company Counterpoint has dismantled the latest Apple device and determined the cost of each component so that we finally get the bill of materials. Or the real cost in order to manufacture the iPhone 14 Pro Max, and here is the cost of the components of the latest Apple device:
- The two most expensive components in the iPhone 14 Pro Max are the always-on display and the newer A16 processor (it costs the company $11 more than the previous processor) and each account for nearly 20% of the total bill of materials.
- Components for cellular wireless made up 13% of the total bill.
- Apple also upgraded the camera and this contributed to the cost increase by $6.30.
- Components that Apple designed themselves (including power circuitry, audio, connectivity, and touch control) cost more, accounting for 22% of the iPhone 14 Pro Max's total bill of materials.
- The manufacturing cost of the iPhone 14 Pro Max is 128 GB and network mmWave up to $474. While when replacing mmWave with a Sub-6GHz network, the cost of manufacturing the device is about $454.
Finally, Apple sells the iPhone 14 Pro Max for $ 1099, but the real manufacturing cost that the company pays is $ 464 (approximately 42% of the selling price), which means that Apple earns $ 635 on every device it sells. However, this amount is not pure profit, because there are other important costs such as assembly, packaging, distribution, salaries and let's not forget the money that goes into research and development, sales and marketing.
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The price is too exaggerated
To be honest, the price is exaggerated. I say that the price of the device is supposed to be $500 or $700. Xiaomi devices are cheap. However, the gigabytes are high. I bought a device for $200 and it has 128 GB and a power device.
I wonder what Apple gains from the iPhone
production costs
salary costs
Transportation and distribution costs
Hardware development costs
Software development and software update costs
As a person who sells digital products and services, I discovered that Apple does not earn much from how many employees work on updating the software
In addition, digital products require maintenance, accuracy and skill
There is an error in calculating the profit percentage in the article
But the real manufacturing cost paid by the company is $ 464 (approximately 42% of the selling price), which means that Apple earns $ 635
So it should be more than 50%, not 42%.
Certainly, a strong company with a good reputation, and it will certainly win, but the company's profits are excessive and exaggerated, and there are also sites that confirm that the profit is much more than this number, within careful studies of the greed and greed of all companies, even Samsung, which I consider, in my opinion, to be one of the worst companies. They raised their prices to keep pace with Apple. And the rope on the tractor
Apple's profit is not limited to manufacturing, but benefiting from advertisements and applications
Peace, mercy and blessings of God
Is $635 considered profit?
Aren't there taxes and the rest of the financial costs not taken into account??
You are satisfied and you are satisfied, and there is a very important cost, which is the cost of paid advertisements, which are added to the consumer’s account, and by the way, they are beneficial to the company and the consumer as well. Without them, no one knows about prices or specifications.
Comparing the price of the product with the price of the pieces is a superficial look
This product resulted in a lot of research, an integrated system, technical support, and a profit as well
There is a price determined by trade, and I think it is only in Western (capitalist) countries, and it is an addition to what you value two and a half times the value of the product. To pay the amounts spent on the product, including cartons, packaging, transportation, shipping, salaries, electricity, rent, taxes, insurance, guarantees, etc. This is why I was not surprised by Apple's profit because it is normal.
What oppressed me the most is that the iPhone SE devices, which are the same parts as the iPhone400, the same shape, the same design, and the same everything, have a price of 50 dollars. How much does the manufacturing price of this device range? I think it costs up to XNUMX dollars.
Indeed, the prices are exaggerated in relation to manufacturing, so let them take what is reasonable. As for multiplying the financial profit, why do they market to their companies at these prices, and vice versa, Arabized Chinese production. I saw it and used it very beautifully. I took it at a quarter of the cost in our country.
One-third for your parts, one-third for your salaries, and one-third for your profit, three for profitable companies' costs.
ok and if?
Let them win