Rs 12,000. That’s All Your iPhone 5S Actually Costs.

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Soyab0007

Soyab0007

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Rs 12,000. That’s All Your iPhone 5S Actually Costs.
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Just yesterday we got you news that the iPhone 5S is selling for as high as Rs 1 lakh in the grey markets of Mumbai and Delhi in India. While the price is for the much coveted iPhone 5S Gold, the silver and black variants aren’t exactly any cheaper. However, according to a recent report by IHS, making the all new iPhone 5S isn’t exactly any more complex or expensive than manufacturing the previous version. All said and done, the all new iPhone 5S costs just $200 or approximately, Rs 12,000 to manufacture.

According to data provided by IHS, a total of the components used to make the iPhone 5S costs approximately $190.90. Putting these components together and manufacturing the actual device you hold in your hand is a measly $8 extra. The total cost of the iPhone 5S isn’t any more than 198.70 dollars. This is just a little over a dollar expensive to manufacture as the iPhone 5 cost $197 to make.

Source:
http://www.indiatimes.com/technology...ts-103438.html
 
Wow, such old article ?
This is pretty common that BOM of an iPhone is listed by some website to show the actual costs of the components. Nothing new in this.
 
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This is the actual pricing.

Manufacturing - $200
Operating Expenses - $80
Wholesale to Retail Markup - $80
Profit - $290
Total Cost - $650

Btw, aren't we supposed to discuss iPhone 6 cost in a few days?
 
I remember reading an article that Apple is one of those companies which spends a lot on R&D like 5 or 6 billion dollars in a Quarter . Add to that other factors mentioned by @ Rak . The price will definitely go higher. I run a small dairy farm and it costs me 14-15 rupees to produce a litre of milk and you all know how much it sells for . :p
 
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When the stuff has higher demand than supply:
Price = what buyer is willing to pay (above this buyer would look elsewhere)

When stuff has higher supply than demand:
Price = what seller is willing to get (below this seller would pack up his business)

Tomorrow if frozen cow dung becomes desirable due to whatever reasons, it may be sold in the markets for $100, but the cost would be nothing.
Price is just an agreement between the seller and buyer on a mutually agreeable and acceptable price. The buyer sees some value (perhaps show off, perhaps feeling good for making it in life, perhaps wants best technology, ... and so on) and that's why agrees to buy.
Cost is not at all involved in any of this.

Cost is involved in pricing ONLY if the buyer himself has the option of manufacturing the same/similar stuff. (for example: the case of assembled PC vs Branded ones)
 
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zibalingz said:
Breaking News!

Rs 1200. That’s All Your Xiaomi Mi3 Actually Costs.
Click to expand...
Do you any source for this BS?
Rear and Front Camera's of Xiaomi Mi3 alone costs Rs.1200 ($20).


Breaking News.. 4 year old.. outdated iPhone4 costs 9k to build but still sells for 17.5k . Apparently no one buys. Shame.
 
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swatkats said:
Do you any source for this BS?
Rear and Front Camera's of Xiaomi Mi3 alone costs Rs.1200 ($20).


Breaking News.. 4 year old.. outdated iPhone4 costs 9k to build but still sells for 17.5k . Apparently no one buys. Shame.
Click to expand...

I think that 1200 xiaomi was a sarcastic comment :P
 
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