iPhones Cost Less Than $30 To Make?

Eric Mack writes on cNet News:

Recent Foxconn revelations hint at higher costs than previous estimates that are still staggeringly low by Western standards. An unprecedented peek behind the curtain of Foxconn’s factories in China may have revealed new hints to how much it actually costs to make each iPhone.

ABC’s “Nightline” was recently given access to the factory floor, and the resulting reporting has provided some new insights into exactly how iPhones are built, a part of the gadget’s gestation process that’s typically been a very closely guarded trade secret.

Horace Dediu, blogger, analyst, and former business development manager for Nokia, tried to parse some of the clues and came to some interesting conclusions …

Read More: cNet News

16 Comments on "iPhones Cost Less Than $30 To Make?"

  1. Vi0let_femme | Feb 22, 2012 at 10:59 pm |

    it’s not that hard to believe.  work in retail and you’ll see how high the markup is compared to the actual cost. 

  2. Mr Willow | Feb 23, 2012 at 12:25 am |

    Surprise, you’re being ripped off. 

  3. Why spend so much money on a device that’s obsolete before you’ve taken it out of its packaging? Just wait for the iphone 4000 that’s coming out in 2 years time.

    • Jin The Ninja | Feb 23, 2012 at 11:13 am |

       just say ‘no.’

      • ha tell that to the people who NEED the latest “thing”.

        • Jin The Ninja | Feb 24, 2012 at 12:50 pm |

          i.e. the couple dozen HK cowboys i know, including one in my immediate family. it’s hilarious to buy a new phone every 3 months, and a new tablet, a new laptop. it must be exhuasting…

  4. Makes me laugh that the drug market is still worse. According to Steven Levit of Freakanomics, on average drugs exchange through 10 different “hands”/entities (1 production, 8 wholesale, 1 consumer sales), and is marked up 3000%. Compare that to retail :p

    • Depends on the drug and who you get it from 😉

      • Please note the word Average… :p So no, in fact, it doesn’t depend on that :p That would be a specific case going towards the statistic :p For instance, I know pot can be had for as cheap as 20$ an oz from the field, but I also know that the same pot will go as high as 550-600$ in NYC. And that’s not even touching the most profitable drugs like coke, meth and heroine  :p

        • Hell, something like acid can be produced for fractions of a penny, like 1cent for 10 or 100 hits, but then in bulk it’s sold for 200-400$ per 1000 hits (2-4$ for 10 hits), and sold on the street for 10-20$ per hit

        • Fair duce. I don’t know what the pricing for drugs are in the US so you lost me abit- not that I know anything about drugs and how much they cost any way…..

          • Wink wink, nudge nudge, Say no more, Say no more….

            So your wife…. Is she… a goer? You know what I mean? 😉

          • Oh she’s a goer alright, it’s getting her to stop which I have trouble with

  5. Some cars have 20 dollars worth of steel in them. Cost of parts and labor in manufacturing means nothing. You have to include cost of developing software and hardware, price of patents, cost of advertising etc. This stills calculates to Apple making a shed load of money but until this is factored in, it is not a true reflection of cost.

    • yep, the initial r&d and all that, but seeing as they add virtually nothing between iterations, you can assume those r&d costs are next to nothing.

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