The long weekend is approaching. I’ll probably head up north for a few days. It’s gonna be miserable and raining here as well as there, so it makes no difference either way. At least I can stop in at the Donut Dip on my way there. It was so cold this morning that the heater came on. It’s the end of May. It must be the global cooling. This morning they’re screeching on the BBC about Trump’s new tariffs on European goods. What do they care? The UK ditched the EU so they should be laughing.
My Porsche just increased in value. Thanks Trump!
I was laughing when they started talking about Trump threatening to put a 25% tariff on Apple goods that weren’t made in the USA. They said if a phone that costs a thousand dollars is made in China, then a phone that’s made in America would cost four thousand dollars. Who in the name of Moe pays a thousand bucks for a phone? It can’t possibly cost anywhere that much to manufacture.
Moe help us all.
If you do an internet search with that query, you’ll get different answers. The first one that comes up is concerning the cost of a “regular phone” vs an iPhone.
“Those costs are likely to range between $12.50 and $30 per unit. The iPhone manufacturing costs are likely to be twice or three times the average. Labor costs are still a small part of the overall cost structure at between 2% and 5% of sales price.”
What’s missing from this picture?
Ok, the iPhone is obviously so much better (according to this) than any other phone, so what is the cost then? According to The Wall Street Journal, the 256 GB iPhone 16 Pro has a “bill of materials” cost of $550, based on data from analyst Wayne Lam of TechInsights. Assembly and testing raise the total to $580.
Your thousand buck phone will end up here. It’s inevitable.
Yeah, I’ll believe that. I just bought a new Samsung phone and it cost me less than 300 bucks. You’re telling me that an iPhone assembled in China costs $580 to make? I’m calling bullshit on that one. Apple stuff has always been targeted at people who are not very tech savvy. When somebody I know in the UK asked me to get them an ipod years ago, it came in very expensive packaging. The ipod was a good product, but why the glorified box? It was to impress upon the consumer that they were getting a high end product, therefore it was gonna cast a lot more than anything else. Nothing’s changed.
Happy Friday