Report pegs iPhone 4S manufacturing cost at $203

By Shawn Knight · 10 replies
Oct 6, 2011
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  1. Apple is reportedly paying around $203 for each 32GB iPhone 4S that rolls off the assembly line, a phone that retails for $749 before carrier subsidy. At this price, Apple…

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  2. Recipe7

    Recipe7 TS Booster Posts: 143

    Here come the iphone and android fanboys -_-
  3. Since the "manufacturing" price is 203, and the carrier price is about 100 bucks higher, would it be the carriers that set the non contract price? Set it so high which would pretty much force most to buy it on contract?
  4. gwailo247

    gwailo247 TechSpot Chancellor Posts: 2,010   +18

    Making profit is good and all, but you have to admire Apple's ability to make people actually proud to pay that money.
  5. bexwhitt

    bexwhitt TS Guru Posts: 355   +73

    think I will stick with my X2
  6. gwailo247,

    At first I thought it was stupid to buy the iPhone and then I realized:

    1) While older Android phones go for $29.99-129.99, you are pretty much stuck with that version of OS, unless you want to illegally install newer OS. For example, my Samsung Galaxy S is stuck on 2.1 forever, regardless if 2.3 or 3.0 come out later.

    2) You can resell your current iPhone on Ebay or Amazon or other sites. In fact, you can sell to a number of sites directly your used iPhone in 12-24 months. I checked, and no one wants my Samsung Galaxy S. So if you consider $200-300 I can get back reselling the iPhone, then it actually makes it cheaper than owning an Android phone.

    3) If you care about costs, then you aren't going to be on a contract in US anyway. You'll get an unlocked Nokia or go pre-paid etc. I just moved from Canada to US and my cell phone bill will be almost 2x higher for less features. The problem with smartphones in US is not the cost of the phone, but the ridiculous cost of monthly plans (such as $39.99 for bare features and another $15 for data plan).

    4) I am of the view that a person should spend $$ on things they interact with or use often (i.e., esp. daily). For example, I have a 37 inch LCD for my PC because I use it every day. So I'll spend $1000+ on a nice LCD over a 22 inch PC Monitor. In the same fashion, many people use smartphones every day. So is $199 + $60 a month to pay a lot for the convenience factor? Maybe for a student or someone earning minimum wage. For a middle to upper-class income earner, $60 a month is nothing.
  7. aj_the_kidd

    aj_the_kidd TS Rookie Posts: 555

    @Guest FYI
    1)Installing a new OS is not illegal it just may void your warranty and/or prevent you from getting support. Also most telecoms have a 2.3 update out for Galaxy S.
    2)Never resold an old phone so its not an issue for me, just gave them to one of my sisters, but yes iPhone has that avantage
    3 & 4)I find somehow people without money somehow own iPhones, go figure. Pre-paid is too much of a hastle for me, plus $60/month is reasonable to me
  8. "my Samsung Galaxy S is stuck on 2.1 forever, regardless if 2.3 or 3.0 come out later."

    I have 2.3.3 on my galaxy S that I got from my Service provider, and I am sure if enough people ask they will make 3.0 avaialble

    Also, why would you pay $50-100 more for a phone that has less(no SD Card slot, does not support flash ect) or the same features of an android phone that is more than 8months old, sure the iPhone looks nice and has a pretty screen...
  9. Apple,sticking it too their cult members as always.
  10. Jibberish18

    Jibberish18 TS Evangelist Posts: 646   +89

    I'm going to go ahead and guess that one way of keeping costs down is to use the same 3.5" screen for, ooooh 5 years now? Maybe I'm wrong. Either that or Steve Jobs spirit lives on by reminding the tech world of how ridiculous he thinks bigger size screens really are.

    BTW one of the things I was looking forward to was a larger screen. 4" would have been fantastic.
  11. 3.0 is tablet only ... maybe you mean 2.3.4, 2.3.5, 2.3.6, 2.3.7, or 4.0

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