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Analysis conducted by reporting firm, iSuppli suggests that Apple has a huge profit margin in iPhone and price cut might be inevitable once the product goes retail. According to them, the overall production cost of 4GB iPhone which sells for $499 is about $245.83. Meanwhile, the production cost of 8GB iPhone which sells for $599 is just $280.83. This figure doesn’t include research and development or advertising costs.
So will Apple cut prices on iPhone? Well, I believe that it all depends on how the consumers react, once it starts retailing. Moreover, Apple might be worried that a price cut on iPhone would considerably eat away iPod’s market share (especially, Nano’s). If consumers think that iPhone isn’t affordable or it isn’t worth the price, Apple would be forced to cut prices.
Usually, I don’t like to speculate, but I think that Apple would try to cover their R&D costs before dipping the prices (Ofcourse, brand factor and component prices do play their own roles).
News Source: CNet News
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wrote, on January 22nd, 2007
[...] Source: Thilak Filed under Blog by [...]
wrote, on January 22nd, 2007
Psh. They’d BETTER cut prices…I just can’t see an average person paying so much for something that performs functions which are performed by devices which we ALL already have. Sure, it’s more convenient, but that doesn’t merit costing so much, I don’t think.
~M~
wrote, on January 22nd, 2007
yeah better cut the price …..
and satisfy the production needs…. around 2009 it would be half the price of current …. but we can’t wait until the price goes down..
wrote, on January 22nd, 2007
Yea and think of for the East Europeans , this telephone is not usebal … it just wont work with our mobile companies which dont offer even video conversation
// sry for my english
wrote, on March 9th, 2007
What sucks is that it’s not a 3G phone, which is used in areas like Japan. It can be used where GSM is available. The price has to be cut, if not, there is no reason to get rid of my ipod and current walkman fon. I love the whole idea of putting all devices into one, but not for more than my rent.
wrote, on September 21st, 2007
from my point of view i think they should cut the prices down it would be a nice thing to do BUT I CANT WAIT TILL THEY GET TO BERMUDA a.k.a BERMY