iPhone's Pricing: Manufacturing Cost vs Retail Price vs Profit Margin [Infographic]



If there was one electronic device that you could not live without, would it be your phone? A stunning 51% of people worldwide say that their smartphone is their most critical electronic gadget, beating out devices such as personal computers, laptops, tablets, and much more.

While the computer arguably has more functionality than the smartphone, it loses out when it comes to portability and convenience, and it is becoming clear that this is what matters to the consumer. It is for the same reason that laptops have been growing in popularity when compared to desktop computers. In this article, you will find Apple's Profit Margins for Each Released iPhone's (Manufacturing Cost vs. Retail Price).

iPhone's Pricing - Manufacturing Cost vs Retail Price vs Profit Margin

Paying The Price For Mobility

Of course, there is a price to be paid when the focus shifts to smartphones over home computers and laptops. In a smartphone, technology has to be miniaturized, and this is especially difficult for components like batteries. In fact, let’s go over some of the reasons why smartphones are so much harder to build than computers.
  • Phones are small, so the components have to be smaller
  • We have less experience building smartphones than full-size computers
  • Smartphones need to have some degree of durability in case they are dropped
As you can see, there are a lot of elements that go into the design of a smartphone that would be unnecessary on a desktop or even a laptop. For example, when was the last time you dropped your PC, if ever? We are sure that our readers can remember at least a few occasions when they dropped their phones.

While smartphone R&D coupled with the components themselves can get quite pricey, there is an upper limit to how much it is reasonable to pay for a phone. Some customers believe that Apple is trying to test this upper limit with the release of the iPhone X, their most expensive phone yet.

Does Apple Love Its Fans?

Since the iPhone X’s release, even longtime customers have been wondering exactly where Apple’s loyalties lie. Well, this isn’t exactly a complicated question.

Apple is a publicly traded company, and their responsibilities are to their shareholders, which means that their responsibility is to make as much money as possible.

The question lies in Apple’s decision when they are forced to choose between profits and a proper user experience. While Apple’s products may be expensive, they are at least upfront about their costs. Unlike many other manufacturers, Apple will provide a premium product for a premium price.

Analyzing The Apple

Of course, Apple is not infallible, and we will be looking at just how much they have made from their iPhone models over the course of the past ten years. We will be using an Infographic to help you visualize the profit shifts for iPhones since the first one in 2007.

What you find may surprise you, or you may discover that Apple's business runs precisely as you would expect.

Infographic: Apple iPhone's Pricing Strategy, Facts, and Statistics

iPhone's Pricing - Manufacturing Cost vs Retail Price vs Profit Margin - Infographic


iPhone's Pricing: Manufacturing Cost vs Retail Price vs Profit Margin [Infographic] iPhone's Pricing: Manufacturing Cost vs Retail Price vs Profit Margin [Infographic] Reviewed by Brian Williams on 6/27/2018 Rating: 5

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