IHS teardown finds iPhone 5S costs $199 to build, 5C even less

[Guest]

^^^ This! So Much This!!! The cost of OS dev, circuit design, patenting, marketing, overhead, hell even how to pack the components into the case is part of this cost. I'd be willing to bet that in fact Apple makes a very slim margin on the cost of the base phone. There is however absolutely no design difference in adding more storage. This is where they start making money.

 

[Guest]

Here's what my GF's thoughts:

after hearing the material only cost $199
"..like I care, it's still better than those overpriced plastic smartphones"

after hearing there's also plastic version of iphone
"..with the loss of Steve, apple is kind of stupid making a move like this, with the revelation of plastic version now you can feel iphone is NOT exclusive anymore, because there is a cheaper version available"

after looking the new UI of iOS 7
"..WTF? Since when iPhone using android?"

..now she think twice before she replace her iPhone

 

[Skidmarksdeluxe]

Doubt it. He comments on every article.

He's entitled to do that but the good thing is you don't have to read them

 

[Guest]

Apple sells the phones to the carriers at full price. The phone company then offers the phone for $199 with a 2-year contract hoping to make money off of the contract. The phone company is the one who losses money initially.

 

[hahahanoobs]

He's entitled to do that but the good thing is you don't have to read them

Touche.

 

[Railman]

Apple sells the phones to the carriers at full price. The phone company then offers the phone for $199 with a 2-year contract hoping to make money off of the contract. The phone company is the one who losses money initially.

Do you have any proof that carriers buy at full price? I cannot imagine them doing that as there is no financial logic to it. If Apple insisted on that I am sure the carriers would go with Android/Windows phones instead.