$200 iPhone

guess what? the iPhone is only a couple o' hundreds $ to make. and apple is selling it with more than doublethe price of the parts? with a two years subscription? well, isn't that cute?

and the 8GB iPhone is only $20 more to make? and you're paying $100 extra? muhahaha… Also, if after the 1st year you might need a battery, the replacement is only 85 bucks… 

well that's apple. after all you're paying for the bitten apple logo and for the bling-bling.

13 Comments

  1. Wow. That’s pretty stupid. The parts cost about $200, but there’s a lot more that went into the making of it (R&D, advertising, labor at the apple stores, etc). On top of that, how crazy is it for a company to want to make a profit?

    I personally don’t want an iPhone at their current price, but I don’t think apple is evil for charging what they do.

    If you don’t like it, just don’t buy it.

  2. @dannyboy: well, hello mr Steve Jobs and welcome to my blog.
    just to make it clear: i’m not saying that apple is evil, but at least if you’re selling your product with a 2-year subscription, lower the price. make it fair for the guy who wants to use it, because you know he’s gonna be paying you for the next 2 years anyway…

    if somebody wants to buy the iPhone with no subscription and then choose his carrier …well that’s something else. you can sell it for 3x the price of the parts

    the problem is apple knows its power and the quality of their products. That’s why they keep the prices at the highest level…

    in the mobile phone industry, on the other hand, you need to be fair. Otherwise you might loose the customers ;)

  3. This is “Bleeding edge” technology. The whole iPhone project was a terrific gamble and I’m sure it was quite costly. However, we now have a next generation device. In time, the price will go down, the features will improve, and all will be right with the world. I recall when LED wristwatches were big, clunky, expensive ($200-$500 IIRC). But, within a surprisingly short time, they were obsolete and even their replacements, the LCD watches were given away in cereal boxes. Be patient, this industry evolves quickly and AT&T’s strangle hold will not last long. Besides, you could always use Micro$oft’s “Surface” technology instead. If you don’t mind dragging a table around with you.

  4. While I think it’s fairly silly for all those people who were clapping and cheering like children during the product launch at Apple stores, I sometimes feel the need to reply to silly rants like yours which diss Apple on the basis of faulty reasoning.

    1. The parts are *estimated* to be more than $200.
    2. The research and design costs money.
    3. Prototyping costs money.
    4. Assembling the units costs money.
    5. Developing the software costs money.
    6. Testing both hardware and software costs money.
    7. Marketing the device costs money.
    8. The entire package has value.
    9. They’re in it for a profit.

    But your hit piece basically implies the iPhone is worth ~$200. You know that is not true at all. So, why regurgitate the lastest false meme by parroting what someone else speculated? Seems you might reconsider.

    As I understand it, iPhone buyers can cancel the AT&T service after activitation and get a full refund of all charges. That enables them to use it as a fancy iPod, storage device, and wifi PDA. Not half bad.

    We can speculate that a hack will come in the future to unlock the phone, so you can use it with your vendor of choice. I think there will be a strong effort on the part of some smart people to make this happen.

    The lies about Apple computers being more expensive are tiresome. They haven’t been true since the early 1990s. Anyone who actually prices out hardware being sold by major vendors knows Apple is competitive, but the ignorant “playa hatas” keep recycling factoids from yesteryear. People with more respect for themselves will consider reality before opening their mouths.

    Hai, sa hai. Noroc, frate.

  5. Simple supply and demand. Don’t buy it if you don’t want to spend that amount of money. What a whiner

  6. The mark up on other products you buy including food and jewelry and cars and clothes is the same. People should get paid for theri years of research, their ideeas etc. The money you mention they are getting for 2 years, goes to AT&T not Apple.

    When VCRs and DVD players came out they were overpriced and the priced dropped as time went on due to production and purchase. The same will happen wiht the iphone eventually.

    Stop being such a gimme gimme gimme.

  7. I keep seeing reports at how an iPhone costs $200 and they’re selling it for $600. Robery eh? Someone mentioned R&D.. that’s a start at trying to figure out how much the iPhone costs. Consider all advertising costs too. Those commercial spots are very expensive, the web spots are expensive, etc. The marketing flury isn’t cheap by any means.

  8. I make video games…

    we sell our product for $50 and the cd costs $.04… I don’t think we’re ripping people off.

  9. I think Paris Hilton is hot. Stop wasting time over a stupid iPhone. Buy it if you can afford it and if you can’t keep your mouth shout ands suck it up. Be contended with what you have two leags, arms, ears, eyes, nose etc- too bad you are not as hot as Paris Hilton. That’s a work of art. Wish Steve Jobs could create more Paris Hiltons! I am willing to pay for that!

  10. Pfffft big deal. Everything you buy or use is exactly the same way. Cars, Electronics, Food all cost next to nothing, but R&D, marketing etc all costs money.

    Whether you agree or not companies are entitled to recover what they spent plus make a profit.

    Without profits there would be no next generation item.

  11. I’m just a by passer with comments.
    Why having all this auguement over a small thing. All I can see is that those complaining abt the phone from a bitten fruit company is asking tooo much is just in actual saying “I have no $$ to buy so I want to condemn it along with it’s mother” I really drop my front tooth while laughing at reading it.
    And those who try to help Apple to win some votes by telling other of the up front costs on building are just playing guitar to a COW. Cow don’t listen, forget it. And Apple won’t give you free iphone for your support. Just let those ppl who bought it, to hit a bump on their head that they’ll never forget when the price went down. Anyway, I think they don’t even care what hit them.

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