Apple IPhone 4 Parts Cost About $188 in parts.
VS THE USA production cost.
Materials and parts for Apple's (AAPL) iPhone, which went on sale on June 24, include a 3.5-inch LCD screen that Apple calls a "retina display." As
the smartphone's most expensive component, it costs $28.50 and may have been made by LG Display (034220:KS), iSuppli says. The iPhone 4 sells for $199
That $188 claim is high for the China market and I'm sure is not the real cost figure. It's seems like the figure that would included all cost of
production to end user, not just parts. the China Market is way cheaper that what this article states. So I will work with the $ 188 figure as the
entire cost. The cost of parts for the iphone is more in line with $ 66.00 based on current china metals and IC production costs.
Now that 199.00 and $299 is with a contract for 2 years. I priced these a couple of weeks ago . The price without the contract is $ 599.00 and $ 659
for top of the line.
So the profit from this phone ( china market) for the $599.00 model is $ 300.00 , and the profit from a $299 model is $360.00 .
Now just add in $175.00 for it being manufactured in the USA. I rounded this figure up to $ 175.00 this is on the high side for additional US
production costs, on per unit basis with American wages to include benefits and the general cost of doing business in The USA. I worked this out
last week in a spread sheet just to see what the US price would be if manufactured here in the USA ( based labor US cost $ 19.00 per hour ) 8 hour
So the Iphone 4 models would cost only. $363 dollars for the lowest model and about $ 17.00 more for the high end model to be produced in the The USA.
that includes all costs in The USA.
Ok, some one here will mention the raw materials to make this phone ,and that there from china, think again. The Materials are from the USA in the
form of recycled metals mostly for the IC board components. China buys these materials from the metal recyclers here in the USA. I know this for a
fact. The price payout for recycled metals here in the USA is high now, China is buying them. I myself turned in some copper . 3 lbs got me $ 27.00
bucks. There would be some savings in production costs being that china would not have to import the metals from the USA, but not figured in though.
What would Apple in make in profit from a US production. ( based at current retail prices , no contracts)
US Production $599.00 Model (Profit $236.00) China Lost profit. ( $ 64.00 per unit)
US Production $ 659.00 Model ( Profit $279.00) China Lost profit. ( $ 81.00 per unit)
Will US job seekers want a job making Iphones at $ 19.00 per hour , yes. Will consumer pay that extra 175.00. Yes I think they would. Will Apple
want to take a hit on there 6- billion just reported profits, No ! Apple can make it cheaper with blood money and nets.
edit on 22-7-2011 by SJE98 because: (no reason given)
edit on 22-7-2011 by SJE98 because: added to