Why do Apple charge so much for iPhones when they cost like $50 to make?
I heard that to make an iphone in China costs Apple $50 a piece so why then do they sell them for £500+ ?
The cost of production is only one factor. They also have marketing, transport, fixed and vereble costs including staff and finally they get the 4ps correct so they can make profit
In short, because they can. Last I checked Harrod's does the same.
Supply and Demand. Econ 101. And that's just Apple's business model. Steve Jobs never wanted it to be a mass market type of instrument like Android anyway. Research and Development costs aside, they keep manufacturing costs down since they are produced in China. Profit margin per device is insane. Phone and tablet sales now fund most of the things that Apple wants to delve into these days. They have stockpiled more cash in offshore reserves than most small nations ever dreamed about. Not saying it's right, just saying it's business.
http://online.wsj.com/news/articles/SB10000872396390443855804577601773524745182
http://bgr.com/2013/10/02/apple-cash-reserves-147-billion-dollars/
http://www.mercurynews.com/60-second-business-break/ci_25087437/biz-break-apple-and-google-now-worlds-two
Design costs a ton of money. You don't have any clue what it costs so don't go posting as if you do.
Because people are willing to pay it. That's really the only reason. If people weren't actually out there buying them for that kind of money, they wouldn't cost that much.
They charge whatever people are willing to pay. They are in business to make money, not to serve the public trust.
The actual cost of manufacturing an iPhone 5S, by the way, is around $218, which means that the gross margin on the phone is around 75% or more, depending on the market.
- Why people like iPhones? I can't never get people who like iphones to give a good reason, why? Some say it easy, but a lot have no clue on how to use their own phones. Can someone explain something useful that great about iphone? Everything they think is special other phones have been doing for years.
- Why do some people like to act like iPhones and iPads are status symbols? If it were, I mean you'd have the whole lifestyle to keep up. But a lot of people buy them. I'll admit they're both convenient but I find it a little weird to think anything of owning one. (This is in general, and not directed towards how people act to me - just my observation).
- Why do some iPhones cost $200 and some cost $900? Is there like data forever or something on these jacked up price or are you literally buying a $900 iPhone when you can only use it for Wi-Fi? And why does it cost so much less when you get it with a service plan like AT&T?
- Why do so many people that own iPhones act like they are better than everyone else? Lately it seems like anytime I meet someone new, they make a point of mentioning the fact that they have an iphone, then talk about how great it is… All I asked was what time it was or if they knew when a baseball game was going to start. One person went so far as to say "if you had an iPhone you wouldn't have to ask."