Buying an iPhone can be pretty expensive, especially if you purchase one off-contract. But it looks like it doesn’t really cost that much to make one, so why all the markup?
The iPhone 5 costs roughly $167.50, while the 4S is only about $35 less to manufacture.
According to 9to5Mac:
UBM Electronics owns TechInsights and news website EE Times, which first reported the story; the analyst firm’s preliminary data is based on specs released by Apple at its San Francisco event earlier this week and teardowns of older-version 16 GB iPhones. According to the results, Apple’s A6 processor is the priciest component part at $28.
There are several factors to look at here. Apple isn’t ripping us off, but they do need to make a profit. They also must account for shipping costs, overhead, the start up fees associated with manufacturing, etc …
While they are making a killing selling iPhone 5′s, I think that Apple focuses on more volume of sales to create profits than the markup of the device itself.
Check out the full report here at EE Times.
What do you think?