Apple Reduces iPhone 4 Production Cost

.....with more slave labor

i'm not impressed

seriously, does every little thing apple does require an article? if you think it does, you should treat every single device equally, with the same amount of articles. there better be like 20 articles about each android device and how they OBVIOUSLY dropped in production costs tomorrow

smh.

eklipz330 im with you toms has become an apple fansite its almost disgusting

so apple gets to rip people off even more for the iphone

Also keep in mind that these costs are estimated since apple refuses to release this info. The estimations also don't take into account the volume discounts that apple gets on the hardware, as well as many other deals and discounts, it can very well cost apple well under $100 to make the iphone

Also wanted to add, if you register on beta sites, you will often see cases in which you will test a smartphone which will retail for like $400-500 but on the waybill for shipping it will have a declared value of in many cases, $40-50, This raises the question of how much is it really costing the companies to make each device.

Actually it doesn't matter how much it cost to make the phone. Apple is free to charge what they want because they produce the products. You, as a consumer, have choices to buy the iphone or not.

So if you are complaining that it only cost them $150 to make the phone while they charge $500 then don't buy it. It's that simple.

Exactly. Bloody communist welfare assholes complaining about a company making something and selling it at a profit. OMFG, how can companies get away with this?

Nicely put.
If people didn't want the iPhone, then they wouldn't buy it.
I personally find it quite impressive on what they can do with such a low budget. Amazing little things smartphones have become.

This is not a ProApple article.
this is like.... wikileaks on Apple's high profit percentage
LOL

Goes to show just how much money Apple really makes per device.

Hell, if I was the one doing this I would honestly only want at least 10% profit from my sales, simply because it would be cheap, many people would buy it and I would get 10% of the money!

Seriously $10 profit * millions of sales on apple's end is a LOT of money, greedy greedy people.

You guys act like everybody and their brother buys an iPhone at full price.

199$ for an iPhone that costs the company ~170$ to make is OK with me.

I don't care about all the apple iphone news in the world unless it involves: micro SD slot & Flash support. . But its always nice to know how apple is ripping people off over there crap, and especially since the device they buy doesn't really do what is needed or suppose to do. (no flash, file system access, saving documents/files from internet, blue tooth file transfer etc etc etc etc etc etc).

You're an idiot. All companies make significant profits on their products, not just Apple. I can see why you're not in business for yourself - a company couldn't survive making 10% or 10$ per device. You expect to pay your employees salaries, your R&D costs or even to keep the lights on at your offices with only 10% profit? What about advertising? What about warranty costs? What about technical support? What about patents & licensing fees for portions of your product that use existing technology (or are you going to hire even more staff to create all your own IP without having to increase your profit)? What about getting your device certified (companies can't just make devices that transmist radio frequencies without getting certification).

But serously, you should go into business for yourself. Your business model looks sound. You can come back to Tom's in a year and show us how ballin you are from the millions you've made.

Hence, you are not in business. 10% isn't squat and wouldn't pay for the R&D, the support, the lights in the offices, etc.

ALL Smart phones costs $500~1000. Like a socialist plan, the phone companies subsidize the cost of the phone with a 2 year contract. AT&T or Verizon pays the $500, you pay the $200, but they make the money off you later with the 2 year plan. Since the teleco companies are buying in bulk, that are most likely paying $300~400, rather than $500~600 for retail.

Here is my business philosophy.... charge as much as the market will bare, while also at a fair price. Depending on the demographic... that could be lower-cost for more customers or higher cost for limited market clientèle.

probably outsourced to india..

"With the CDMA iPhone 4, Apple has shown once again that it never recycles a product design,”

Lets see, they basically change nothing more but the antenna type and position on the phone. How is that not the definition of "recycling" a product design?