Apple’s new iPhone release date is approaching.
So in my last blog post I asked why should I purchase iPhone
6S Plus?
In this post I want to ask is Apple ripping us off for its
new 6S Plus?
Well I don’t have any idea what is going on behind the
scenes ‘cause I’m just a lay person as you’re.
But one thing I know, these corporations and multinationals
are willing to do anything for profits. ‘cause money is their religion.
Hey Guys! Don’t get me wrong. Please don’t get an impression
that I’m a commie.
No! I’m not! Companies do make good stuff that makes our
lives better. But we can’t drink their Kool Aid without asking a question.
If I’m going to pay $749+ (Yes it is $749+!) for new iPhone
6S Plus then I got right as a consumer to ask the question, is Apple Ripping us
off?
Don’t you think $749+ is too much for a smartphone even
considering the fact that Apple wants huge profit on each iPhone they sell?
Why am I saying so? Well! I got some proof to substantiate
my claim. I’m not making this up.
Let us analyze whether I am right or wrong.
Bank of America’s Merrill Lynch carried out a research
claiming that it costs Apple merely $234 in components for building a 64 GB
iPhone 6S.
However, they are selling it for $749.
We need to break it down a little!
$234 for all its components, how does it add up to this
figure?
The entire semiconductor costs $127, for core component $74,
$33 for aluminum chassis.
Apple 64
Bit A9 Processor = $25
64 GB
Flash Memory = $20
Cellular
Radio = $36
Touch
ID Fingerprint Sensors = $22
3D
Touch Display + Cameras + Battery = $74
Aluminum
Chassis = $33
Here is the complete table for the cost of all the
components that goes into the making an iPhone 6S.
|
COMPONENTS
|
COST
|
|
Cost
of Semiconductors
|
|
|
64 A9 Processor
|
$25
|
|
64 GB Flash Memory
|
$20
|
|
Cellular Radio
|
$36
|
|
Touch ID Fingerprint Sensors
|
$22
|
|
Others
|
$24
|
|
Total for Semiconductors
|
$127
|
|
Cost
of Core Components
|
|
|
3D Touch Display + Cameras + Battery
|
$74
|
|
Cost
of the Body
|
|
|
Aluminum Chassis
|
$33
|
|
Grand Total for all Components of iPhone 6S
|
$234
|
So from the table it is quite clear it costs only $234 for
building an iPhone 6S.
Now let us see how much profit apple makes and how much we
lose as a consumer.
|
Total Cost for Apple Building one iPhone 6S
|
$234
|
|
Price of an iPhone 6S Apple Charges from us
|
$749
|
|
Net
Profit Apple Makes on One Unit
|
$515 ($749 - $234)
|
My Take on this
So Apple profits $515 for one unit. Is that really what Apple makes on a unit?
Let us be fair. We have not included manufacturing, assembling, R & D and distribution costs.
Even if you add all these costs, how much will it be?
Say $100 or $150, at max $200, not more than that.
Most of the manufacturing is done in China so it is cheap. It won’t be more than $150.
But being fair minded here we are going with $200.
So if you deduct $200 from $515 then the Net Profit for Apple on one unit will be $515 - $200 = $315
Isn’t $300 in profits too much even considering a company has to make a good profit?Or$315 is just fine and I’m too mean here!
I don’t know about you guys! But what do you think?
If you think $749 for new iPhone 6S Plus is fine then it is
up to you. May be I’m just too mean spirited and don’t know how the world works.
But again, I’m not making this stuff up, it is for real. I
do think $749 is a rip off and Apple is fleecing too much out of me, may be
$100 an extra.
Anyhow, Apple’s new iPhone release date is approaching, think about it once again and let me know!
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