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Except that there is a mountain of evidence that shows none of Apple's parts are nearly as expensive as the retail price. If I remember correctly, the Iphone 1

Except that there is a mountain of evidence that shows none of Apple's parts are nearly as expensive as the retail price. If I remember correctly, the Iphone 13 Pro costed an estimated $570 USD build, with a retail sale cost of $1,099 USD. Of course, the same can probably(?) be said about the phones produced by competitors such as Samsung, with the Galaxy. Point being, Apple has always marked their garbage up by anywhere from ~150% to 200% of the actual build price. There is no reason to trust Apple's pricing for spare parts. Especially when previously, these same repair stores went by the back door to get these parts directly from the factories in China.

sbuk 3y ago
Build cost != cost to manufacture. They, nor anyone else, are not marking "their garbage up by anywhere from ~150% to 200% and distribute. of the actual build price." That is simply not how manufacturing works. Every step of the supply chain has costs; labour and raw materials for example. Then there are land costs, taxes, services (power, water, machinery, et.) and distribution. Then there is R&D to account for; software needs to be developed, for instance. Their actual markup is around the 30% mark.
- Prickle 3y ago
  That's fair. I did completely omit the R&D costs. I did some basic research again (last comment was on the toilet) and everything I am finding says that Apple's Iphone margins are sitting at around 40%. Either way, I can't afford one if I can't replace parts at cost.
  - lotsofpulp 3y ago
    There is almost no way anyone outside of high level Apple executives that would be privy to their estimates for margins on individual iPhones including R&D and other costs. Especially because a lot of Apple products' value proposition comes from the ecosystem of their services, including the ability to visit a retail store and talk to a W-2 employee of Apple (which sets them quite apart from basically every other electronics brand). You can see their overall profit margin though, which they keep around 25%: https://www.macrotrends.net/stocks/charts/AAPL/apple/profit-margins https://www.macrotrends.net/stocks/charts/AAPL/apple/profit-...
CPLX 3y ago
Wait until you see the spread between parts cost and retail on a grilled cheese sandwich.

sbuk 3y ago

Build cost != cost to manufacture. They, nor anyone else, are not marking "their garbage up by anywhere from ~150% to 200% and distribute. of the actual build price." That is simply not how manufacturing works. Every step of the supply chain has costs; labour and raw materials for example. Then there are land costs, taxes, services (power, water, machinery, et.) and distribution. Then there is R&D to account for; software needs to be developed, for instance. Their actual markup is around the 30% mark.

Prickle 3y ago
That's fair. I did completely omit the R&D costs. I did some basic research again (last comment was on the toilet) and everything I am finding says that Apple's Iphone margins are sitting at around 40%. Either way, I can't afford one if I can't replace parts at cost.
- lotsofpulp 3y ago
  There is almost no way anyone outside of high level Apple executives that would be privy to their estimates for margins on individual iPhones including R&D and other costs. Especially because a lot of Apple products' value proposition comes from the ecosystem of their services, including the ability to visit a retail store and talk to a W-2 employee of Apple (which sets them quite apart from basically every other electronics brand). You can see their overall profit margin though, which they keep around 25%: https://www.macrotrends.net/stocks/charts/AAPL/apple/profit-margins https://www.macrotrends.net/stocks/charts/AAPL/apple/profit-...

CPLX 3y ago

Wait until you see the spread between parts cost and retail on a grilled cheese sandwich.