Quote:
Originally Posted by Chrysalis
one doesnt need to work for apple/samsung to know that the prices are inflated.
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We all know the profit margins on the hardware are high, yes, these are leading edge smartphones with some of the most advanced consumer technology in the world in them. R&D costs (which you don't see) are also high.
While I don't disagree they also make a crapton of profits on this stuff, certain companies have done professional analysis of how much the components and manufacturing costs - and as I say, they conclude the iPhone 5 costs over $200 for hardware alone before the cost of distribution and developing iOS are added on top. The S4 costs about $245 in pure components and manufacturing, the iPhone 4s cost between $196 and $254. Simply put, some loony raving "The iphone 4S cost apple £81.87 to build and the 5 was £103 to build." is horseshit.
Incidentally when you see the marketing for these new products a lot of emphasis is put onto the new
software features, not the hardware. The only significant hardware change on the iPhone 5s was the fingerprint sensor, and that cost less than $15. Knowing a good few software developers and designers, it does irk me that some people seem to think software and design magically come for free and the only cost of making something is the physical hardware.