The "REAL" cost of the device?

[Bike Mi Vie]

You think someone will do a breakdown and find the real cost?

 

[Mike Dee]

re: The "REAL" cost of the device?

For what purpose?

 

[Morty2264]

re: The "REAL" cost of the device?

Nowadays, most flagship devices will cost a decent chunk of change. I think the question we pose to ourselves is whether or not the device is worth the investment.

 

[Bike Mi Vie]

re: The "REAL" cost of the device?

Nowadays, most flagship devices will cost a decent chunk of change. I think the question we pose to ourselves is whether or not the device is worth the investment.

Well to see how much the markup. Like especially with the iPhone

 

[Bike Mi Vie]

re: The "REAL" cost of the device?

For what purpose?

Well to see how much the markup. Like especially with the iPhone

 

[bhatech]

re: The "REAL" cost of the device?

Real cost of the device only companies know. Bill of materials is one thing but so many other factors like paying for their engineering, R&D, marketing, support etc. Just because materials cost only $400 doesn’t mean they should sell for consumers at that price. Applies to Apple, Samsung or any company.

 

[Katrina White1]

re: The "REAL" cost of the device?

You think someone will do a breakdown and find the real cost?

For me, the REAL cost of the device is the price I pay for it plus the accessories I purchase for it. That's the only costs that really matters to me.

As for product costs, labor, etc...the world may never know. Lol

 

[donm527]

re: The "REAL" cost of the device?

Someone usually does. Give it a couple of months. Once someone does a teardown and breakdown.

I mean you can Google "how much does it cost to make a samsung S20" and you'll get $528

So the N20U will most likely cost more than $528 and if so, then I think I did well spending $300 for mine (AT&T $1k off promotion)

You think someone will do a breakdown and find the real cost?

 

[TMavC5]

re: The "REAL" cost of the device?

Capitalism. Company exist to make profits.

 

[Mike Dee]

re: The "REAL" cost of the device?

Real cost of the device only companies know. Bill of materials is one thing but so many other factors like paying for their engineering, R&D, marketing, support etc. Just because materials cost only $400 doesn’t mean they should sell for consumers at that price. Applies to Apple, Samsung or any company.

Its so complex, I'm not even sure companies know the exact cost until they have stopped selling and supporting a product.

 

[Mike Dee]

re: The "REAL" cost of the device?

Someone usually does. Give it a couple of months. Once someone does a teardown and breakdown.

I mean you can Google "how much does it cost to make a samsung S20" and you'll get $528

So the N20U will most likely cost more than $528 and if so, then I think I did well spending $300 for mine (AT&T $1k off promotion)

That only includes production costs. In the end after all is said and they are lucky if they make a dollar a unit.

 

[donm527]

re: The "REAL" cost of the device?

Yeah I know. This question comes up time and time again in every forum I've followed and people will say their's cost like marketing/advertisement that we'll never be able to figure out. If Samsung is only making $1 a phone, then they need to figure out what they are doing wrong and make the change they need to do. Cause Apple can't be making $1 on their flagship over the past decade that has allowed them to have more case on hand than some small countries.

That only includes production costs. In the end after all is said and they are lucky if they make a dollar a unit.

 

[donm527]

re: The "REAL" cost of the device?

That only includes production costs. In the end after all is said and they are lucky if they make a dollar a unit.

If you want an idea how much a company can make per phone...

https://www.zdnet.com/article/iphone-xs-max-how-much-profit-does-apple-really-make-on-each-one-sold/

"And based on that data, the gross margin for the iPhone likely stands at around 40 percent. Based on this figure, that $1,249 iPhone XS Max costs Apple in all (parts, labor, R&D, admin, and other associated costs) around $750.

Which means that a good chunk of that revenue -- some $500 -- is profit."

 

[Mike Dee]

Re: The "REAL" cost of the device

If you want an idea how much a company can make per phone...

https://www.zdnet.com/article/iphone-xs-max-how-much-profit-does-apple-really-make-on-each-one-sold/

"And based on that data, the gross margin for the iPhone likely stands at around 40 percent. Based on this figure, that $1,249 iPhone XS Max costs Apple in all (parts, labor, R&D, admin, and other associated costs) around $750.

Which means that a good chunk of that revenue -- some $500 -- is profit."

In a perfect world that would be true. I don't need links to articles to make my case. There are more elements to consider and too many things too go wrong to determine real cost until the dust settles. If you've ever worked for a major company that has had their fair share of product failures, recalls, law suits, or poor sales, then and only then can you understand that's its not just whats up front that counts.....its the bottom line.

 

[Ry]

Real cost of the device only companies know. Bill of materials is one thing but so many other factors like paying for their engineering, R&D, marketing, support etc. Just because materials cost only $400 doesn’t mean they should sell for consumers at that price. Applies to Apple, Samsung or any company.

Yup.

I get why people look for that info. I don't feel it's all that useful or helpful though.

Run a restaurant and only charge folks what it costs you to buy the actual food. You won't last long.

 

[donm527]

Re: The "REAL" cost of the device

As I wrote above... it was to only give an idea from a company that also runs its business in the same world as Samsung and probably has many more lawsuits than them being not the largest company in a country but one of the largest in the galaxy.

Just showing their breakdown what it is after parts and R&D, etc. you talking about their past product failure and recalls, etc... you don’t even know how much of that is factored in price if at all. It could be like that example above the price of the phone is how much is costs including down to the electricity costs to make that ONE phone. You see Apple sets the price where they can pocket $500 and from there, they can break that profit from that phone down to pay for legal costs and past failures, etc.

Not trying to make it complicated... just an idea... how much for parts, a dollar fig for the overhead, subtract it from the selling price and get the possible profit.

From that profit the company uses it for more r&d, pay legal fees, past mistakes, etc.

In a perfect world that would be true. I don't need links to articles to make my case. There are more elements to consider and too many things too go wrong to determine real cost until the dust settles. If you've ever worked for a major company that has had their fair share of product failures, recalls, law suits, or poor sales, then and only then can you understand that's its not just whats up front that counts.....its the bottom line.

 

[Mike Dee]

Re: The "REAL" cost of the device

As I wrote above... it was to only give an idea from a company that also runs its business in the same world as Samsung and probably has many more lawsuits than them being not the largest company in a country but one of the largest in the galaxy.

Just showing their breakdown what it is after parts and R&D, etc. you talking about their past product failure and recalls, etc... you don’t even know how much of that is factored in price if at all. It could be like that example above the price of the phone is how much is costs including down to the electricity costs to make that ONE phone. You see Apple sets the price where they can pocket $500 and from there, they can break that profit from that phone down to pay for legal costs and past failures, etc.

Not trying to make it complicated... just an idea... how much for parts, a dollar fig for the overhead, subtract it from the selling price and get the possible profit.

From that profit the company uses it for more r&d, pay legal fees, past mistakes, etc.

Product failures are future product costs not past costs. We can dispute this all day long and not get anywhere. The bottom line is regardless what a product costs, the market and competition drives what the consumer pays not direct and indirect product costs.

 

[L0n3N1nja]

While it's interesting to know how much the parts cost, that doesn't include all the costs of manufacturing and certainly won't tell us how much mark up is actually on the product.

Final price needs to cover materials, labor, overhead on the buildings and equipment used for manufacturing, insurance , R&D, advertising, potential recalls, warranty replacements, repairs and maintenance on equipment, investments into new facilities, sales teams need to be paid, commissions go to sales reps, marketing teams get paid, executives need their cut too, then they hand out free accessories left and right with pre orders, legal fees, and when all said and done they need to turn a profit and make shareholders happy because capitalism.

Then when everything goes right there is risk of manufacturing more product than is actually sold and sitting on a warehouse of unsold product that eventually gets sold at a heavy discount, at a loss, or eventually disposed of.

Remember the Note 7? Samsung had to eat the cost of those, just one of many unexpected situations that can be extremely expensive. It's the type of thing that could bankrupt a company.

Meanwhile outside of Samsung alot of Android OEMs are actually losing money, they obviously charge more than the cost to build the phone, but they can't make enough to cover all the other costs and turn a profit.

 

[Mike Dee]

While it's interesting to know how much the parts cost, that doesn't include all the costs of manufacturing and certainly won't tell us how much mark up is actually on the product.

Final price needs to cover materials, labor, overhead on the buildings and equipment used for manufacturing, insurance , R&D, advertising, potential recalls, warranty replacements, repairs and maintenance on equipment, investments into new facilities, sales teams need to be paid, commissions go to sales reps, marketing teams get paid, executives need their cut too, then they hand out free accessories left and right with pre orders, legal fees, and when all said and done they need to turn a profit and make shareholders happy because capitalism.

Then when everything goes right there is risk of manufacturing more product than is actually sold and sitting on a warehouse of unsold product that eventually gets sold at a heavy discount, at a loss, or eventually disposed of.

Remember the Note 7? Samsung had to eat the cost of those, just one of many unexpected situations that can be extremely expensive. It's the type of thing that could bankrupt a company.

Meanwhile outside of Samsung alot of Android OEMs are actually losing money, they obviously charge more than the cost to build the phone, but they can't make enough to cover all the other costs and turn a profit.

^^^ This ^^^

 

[Morty2264]

For me, the REAL cost of the device is the price I pay for it plus the accessories I purchase for it. That's the only costs that really matters to me.

As for product costs, labor, etc...the world may never know. Lol

That's a really good way to put it. And factoring in repair costs if such a thing arises.