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Doesn't look like $500 or $600 worth of materials
A company that does these teardowns for living, Portelligent, estimates the cost of materials at $220. When I used to work for a company that manufactured thing, the rule was to charge three times the cost of materials. The additional two thirds covered assembly, test, packaging, manuals, production errors, etc. It also recovered the hardware and software engineering and documentation costs. There are also certification costs such as FCC testing. Finally there was a modest profit. Apple does have a much higher volume product so that the costs that are not per unit costs get spread out over more units so that has the potential for a bigger profit that what we made per unit.

Then when you get to the retail channel there are additional costs. That nice, friendly salesperson isn't being that helpful for free. He needs his cut as does his boss and the company they work for. So figuring $660 for the calculated selling price, with $60 bucks off for agreeing to spend $80 a month for two years ($1920) sounds about right to me.
Posted by: DennisErnst   Posted on: 07/05/07 You are currently: a Guest | Members login | Terms of Use
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Old school...  olePigeon | 07/03/07
Paper clip...  GeoNorth | 07/06/07
Wish I had that kind of money  GuidingLight | 07/03/07
Not his personal one, I'm sure  CobraA1 | 07/03/07
Message has been deleted.  ballmerrules@... | 07/03/07
Doesn't look like $500 or $600 worth of materials  Protector | 07/05/07
All costs walk on two legs  conradswartz | 07/05/07
Ever been to a restaurant?  Steve4Fluff | 07/05/07
As a matter of fact....  eljorgisimo | 07/05/07
You are also buying new technology...  Flying Pig | 07/05/07
Doesn't look like $500 or $600 worth of materials  DennisErnst | 07/05/07
"you will loose all data on the phone" - NO  ejhonda | 07/05/07
"you will loose all data"  lge@... | 07/05/07
Grammarian strikes  GeoNorth | 07/06/07
Apple IPhone  fischbachtal@... | 07/05/07
Ouch - Thanks for catching that one - typo fixed  Bill Detwiler - TechRepublic | 07/05/07
More typos  Mr_Dave | 07/05/07
Yes, there are a few typos in this feature  fuzzy2k | 07/05/07
How About?  blackjack861@... | 07/05/07
Loose  dcconlee@... | 07/05/07
Battery good for 18 months, what then?  MattiasW | 07/05/07
You brought me to the brink...  Hey_Joe | 07/05/07
Well Done! That was fun!  ChatoYSugar@... | 07/05/07
where is the 8gig drive? (nt)  wessonjoe | 07/05/07
Memory doesn't necessarily mean there's a drive.  Flying Pig | 07/05/07
Leave them wanting... 3G,800x480,battery life  jsharsky-3@... | 07/05/07
Hhmmmm...  ZenaPrincess | 07/05/07
Price Break  RobtAlan | 07/05/07
Price Break  RobtAlan | 07/05/07
nice !!!!  greeb_z@... | 07/05/07
What siz was it?  Hempman | 07/05/07
outside=awsome, inside=awful!  srikanth.sridharan@... | 07/05/07
why put it back together?  nogods | 07/06/07
Not 50, about $265  Species8472 | 07/06/07
Really cool  Nobu_z | 07/06/07
apple iphone  rashidmobilelab | 11/03/07
RE: Apple iPhone completely disassembled (Cracking open the Apple iPhone)  eliordz79 | 07/03/08

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