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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 p
by 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 agoThat'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 agoThere 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-...