Saturday, October 20, 2012

What is the production costs of the New iPhone 5? How much profits is Apple pocketing?


For starters, almost ALL the parts are similar to the older 4S.

The company UBM TechInsights has recently published an estimate for the cost of an iPhone 5, namely the 16GB version of the 5 model. According to analysis, the screen new iPhone is costing Apple 18 dollars for the frame and 7.50 for the touch membrane .The processor $28, the camera 10 and the integrated antennas WiFi, Bluetooth and GPS only $4. Along with other components of the device, its manufacturing cost is only $167.50 dollars.
This figure is considerably higher than previous devices of Apple. The construction of the iPhone 4S cost the company $132.50 per device while the older iPhone 4 only $ 112. Indeed it seems that beyond the camera and memory, all other parts are more expensive than their counterparts in previous devices.
Considering the Phone would cost a consumer $650, that's a whopping 75% GP before your ''other'' costs associated with the promotion of the iPhone to the World's markets. Things like Marketing, Human Resourcing, Customs,Excise,transportation etc.

Volume based Pricing Policies 
Perhaps Apple's final Gross Profits on a unit to unit basis, after these costs are not as large as we thought.Taking into account however, they sold 5 Million units in the first week, they're still making a hefty buck. You do the math!
 Would you like to read this on our site? Click here to read this article on G.R.




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