ARITHMETICALLY WRONG AS ALWAYS
Check for yourselves if the actual cost of an iPhone adds up correctly!!!
With battery costing $4, camera at $26, Logic board at $74, Speakers at $11.50, Casing at $22, screen at $37 and other parts at $117.50, How much should an iPhone cost? The Answer must be $292, Isn’t it?
Yes, This is the exact worth of an iPhone 7. But a 32 GB iPhone 7 costs more than twice at $649.
And mind you these are phones without the speaker jacks. Double up the core price of components for a concept or engineering? Well, it is the company co-founded by Steve Jobs that never followed logic in pricing. Can the present CEO of Apple, Tim Cook who looks similar to Steve Jobs in his black polo T-shirt think differently? No way not now, when Samsung has already drained 5 Billion in the Note 7 episode.
Apple is never that compassionate with consumers nor do they claim to be customer friendly. Incidentally, Foxconn in China is the assembly location of iPhone 7. Foxconn is not known for their labour friendliness, nor as a generous paymaster. Annually, Foxconn premises reports at least a dozen suicides. In fact, iPhone is made at a dead cheap rate.
The large profits Apple can put into their kitty is astronomical. Well, that is business, and they are not here for charity. In fact, Steve Jobs and Apple are not known for their inclination philanthropically.
IPHONE – THE ACTUAL PRICE
Given the hefty price tag, it’s only natural to wonder how much the actual product costs Apple to make. CNN Money has released a helpful price breakdown which details the cost of each component recently. The total value of an iPhone 7 adds to $292.
Here is the Video posted by CNN that reveals the actual cost to build the iPhone 7:
APPLE REBUKES THE CLAIM
Tim Cook is quick to rebuke the part break up figure put forward by CNN money. According to him, the numbers are nowhere near accurate at all. But that was quite natural as the upbeat for iPhone is on and no downfall in the prediction. According to the defense put forward by Tim Cook, there are expenses on design, developments, software development and transportation. Of course, the breakdown did not cover the marketing expenditures, dealer margin reserves as well as the service providers fee.
The business model which Apple is proud of is found on a profit motive. And that never hindered their unprecedented growth in business. The vast reserve they have with them is unimaginable. The closest competitor only extended at least a fraction of that reserve. They get the manufacturing and assembly done, at the shortest time and the stingiest budget. Even Tim Cook visited the Foxconn factory more than once to find out the inhuman conditions in which the workers are treated. But nothing changed the outlook for Apple or that of Foxconn.
BUSINESS MODEL’S ADVANTAGE
‘Strike the anvil when it is hot’ is the underlying philosophy which the iPhone maker is following. And they have nothing to regret- at least so far. What would a company expect, when profit is the sole driving force?
Is Apple telling the world that profit is of prime importance and all other things like sympathy, empathy, humanitarian considerations or human right violations can wait? Tell your views in the Comment Section below. To know more about iPhone 7 – Visit this link: Apple’s new model.