iphone manufacturing cost (1 Viewer)

truckracer

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SatelliteGuys Pro
Sep 17, 2004
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Charleston wv
i recently ran across a website saying something about the "BOM" or cost of manufacturing an iphone 3G or 3GS is around 187.00 dollars!!!

It also said that the carriers are charged (of course) higher prices than that from apple for each handset.

If this is true there's no wonder at&t didn't want to cut me a deal on a replacement phone.

My question is why would a carrier be so willing to risk such a high investment in a phone? Phones get broken, stolen, rained on, general technical failures, etc.

That's a pretty steep price for something to carry around and get broken.

I believe if was at&t i would have never got in bed with apple on a such a high priced piece of hardware.

surely as things are made in third world countries and china that apple to lower its production costs of the iphone.

isn't that the american way now days?
 

TheForce

SatelliteGuys Master
Supporting Founder
Pub Member / Supporter
Oct 13, 2003
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Jacksonville, FL, Earth
First of all the cost basis is not just the nuts and bolts, It's also the dev costs and marketing costs plus a share of the company overhead.

Second, all carriers subsidize the phones they sell. I just bought a new htc TP2 from Verizon for $99. So here's the big secret that most people seem to know- IT's all about the profit margin in the service. Remember Polaroid? They sold a camera for 29 bucks. For them it was all about the film sales. :)
 

Geronimo

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Sep 9, 2003
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I agree with Mr. Landis. When you purchase an iphone through AT&T you sign up for service fora specified period of time. E ven if you wind up trashing the phone after the warranty period you are still obligated to pay for that service---or at least to pay a specified cancellation charge.


The amazing thing is why we as consumers sign up for this. But we need the darned things or maybe we just think we do and so we pay.
 

mike123abc

Too many cables
Supporting Founder
Sep 25, 2003
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Norman, OK
i recently ran across a website saying something about the "BOM" or cost of manufacturing an iphone 3G or 3GS is around 187.00 dollars!!!

It also said that the carriers are charged (of course) higher prices than that from apple for each handset.

That is how Apple makes all the money on the deal... They charge the carriers up to $700 on a handset.
 

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