Is it worth the dough?
Is this iPhone the Cadillac of smart phones? Or is some other metaphor in order? Perhaps a Ferrari? They have come equipped with ultrafast A7 processors (A8 for the new iPhone 6); they’re great for games; and they have Apple Pay. They cost a lot more than, say, Motorola phones. Let’s Tear Down the iPhone6
People pay immense sums of money for health care, for college educations, for car insurance. Life in industrialized nations is supposed to be expensive. It’s the cost of business, and if often makes people work overtime. At what point do we question the expense of all these items.
Recently, research firm HIS gave the big teardown to the iPhone 6 to look inside, find what’s there, and find out how much each component costs. Here’s what it found:
Display and touchscreen,$41.50
Wi-fi & Bluetooth mechanism,$40.50
Memory & Storage,$15.00
Other materials and assembly,$77.50
This pans out to $228 to produce one of these things. If you are able to land one for $199, you’ve gotten yourself a phone at under cost, so have a party. But those are pre-contract prices. If you buy one with the contract, the iPhone6 usually runs about $649, the Plus at $749.
Each model has a bigger screen than previous releases, the plus sporting a 5.5 inch display. So far, the reviews aren’t half bad.
Now, it’s not clear what happens when one tears down a Motorola Moto X. But it retails at as low as $99, pre-plan, with a 5.5-inch screen, a faster processor, and more RAM. These simple facts call into question the large profit margins fetched by Apple.