Forums > Social Chat > iPhone - reasons NOT to buy it...

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FireTomStargazer
6,650 posts

Posted:
well, first of all it's a hype. shrug that alone would turn me off in the first place. But second - and most important - the components of said cellphone are worth about half of what the phone sells for.

ISuppli unscrewed the phone and valued the components:

 Written by: ISuppli website

Apple and Cingular will see a nearly 50 percent gross margin on each iPhone sold, giving the companies “a hefty profit, as well as plenty of room for future price cuts,” according to a preliminary Bill of Materials (BoM) estimate by iSuppli.

“iSuppli estimates the 4GB version of the Apple iPhone will carry a $229.85 hardware BoM and manufacturing cost and a $245.83 total expense, yielding a 49.3 percent margin on each unit sold at the $499 retail price,” said Andrew Rassweiler, teardown services manager and senior analyst for iSuppli. “Meanwhile, the 8GB Apple iPhone will sport a $264.85 hardware cost and a $280.83 total expense, amounting to a 46.9 percent margin at the $599 retail price.”



The market for cellphones is well saturated already. Companies seem to only be able to make a big profit when they put a brand, like "Apple iPhone" on it.

It's not worth to go for - I reckon.

the best smiles are the ones you lead to wink


BirgitBRONZE Member
had her carpal tunnel surgery already thanks v much
4,145 posts
Location: Edinburgh, Scotland (UK)


Posted:
Yeah. Because we all know that only Apple iPhones have a huge margin on their expense, and every other product we buy is worth exactly what we pay for it. ubblol

"vices are like genitals - most are ugly to behold, and yet we find that our own are dear to us."
(G.W. Dahlquist)

Owner of Dragosani's left half


Pen DravenUnofficial Lord Of Confusion And Pirate Extrodinaire
1,363 posts
Location: Nuneaton


Posted:
I wouldn't buy one either really,, but lucky me,, company i work for is going to get a shed load of em when they ship over here in the UK later this year,, and that doth indeed rock.

Although carefull,, the Apple Zealots might get you ubblol

Some men see things and say why....

I Dream of things that never were and say Why Not....?

Oh No I'm going to get Shot Alive if he finds out - DA wink


FireTomStargazer
6,650 posts

Posted:
You're right Birgit, actually if you buy this one:


Non-Https Image Link


at least you get you money worth in blood and suffering from the blingbling wink

the best smiles are the ones you lead to wink


Pen DravenUnofficial Lord Of Confusion And Pirate Extrodinaire
1,363 posts
Location: Nuneaton


Posted:
arrrrrrrr thats hideous Tom heh

Some men see things and say why....

I Dream of things that never were and say Why Not....?

Oh No I'm going to get Shot Alive if he finds out - DA wink


BirgitBRONZE Member
had her carpal tunnel surgery already thanks v much
4,145 posts
Location: Edinburgh, Scotland (UK)


Posted:
Sh!t, Tom, I'm blind! Thank God I can touchtype...

Seriously though, I doubt that most people who can afford a 600$ phone (or think they need one) will be worried about the 47% margin wink

I was more annoyed about the fact that in most countries, they seem to cooperate with only one phone company (t-mobile in Germany), so that you're forced to take their tariffs with the phone if you want it. Free competition...?

Disclaimer: My phone doesn't even have a camera, a colour display, polyphonic ringtones or anything like that, so this is a bit like being upset at Mercedes for charging too much for a metallic gloss on the S-class...

"vices are like genitals - most are ugly to behold, and yet we find that our own are dear to us."
(G.W. Dahlquist)

Owner of Dragosani's left half


FireTomStargazer
6,650 posts

Posted:
yupp, the above goes for 1.3 .... yes ubblol million dollars...

I buy second hand cellphones, nope I'm not into that hype of having to have ... and even though I love the godfather's song of Morricone, I don't have it downloaded. I reckon it's all a scam...

However - and that's why I posted iPhone here - the margin on cellphones is not that high... which is why the Apple shares soared by 50% since they announced a cellphone launch... ubbloco

the best smiles are the ones you lead to wink


oliSILVER Member
not with cactus
2,052 posts
Location: bristol/ southern eastern devon, United Kingdom


Posted:
since consumerism kicked off some people have and allways will pay for labels and a brand name. people have different values, and to some people value for money isnt that important. hence things like iphones and mercedes and green and blacks chocolate... shrug

Me train running low on soul coal
They push+pull tactics are driving me loco
They shouldn't do that no no no


YakumoSILVER Member
veteran
1,237 posts
Location: Oxfordshire, United Kingdom


Posted:
I'm not interested in one but component cost isn't something to get heated about.

it's not like every copy of XP,Vista isn't sold at a thousand percent markup on the CD/DVD cost, or any other software at hundreds. There's R&D costs for them to recoup.

Blinded by Hyperlights, please donate generously grin


FireTomStargazer
6,650 posts

Posted:
okay, now HoP this is the 180 Millionth and first website, where we talk about iPhone. According to an article in German newspaper "Sueddeutsche" the amount that Apple and AT&T charge their customers to use this phone in a two year period.

I guess it's hysterical that people queue up and camp for this item, just to be the first ones to get it.

More than that, I believe it's perverted (consumerism). Honestly - if it wasn't funny - I would have to start puking about the fact that maybe more people care for the iPhone than for the war in Iraq... shrug

the best smiles are the ones you lead to wink


YakumoSILVER Member
veteran
1,237 posts
Location: Oxfordshire, United Kingdom


Posted:
offtopic but did you see the news article about the US TV reporter who refused to read a piece about paris hilton first over news on iraq, she tried to shred her script on air biggrin smile

Blinded by Hyperlights, please donate generously grin


BirgitBRONZE Member
had her carpal tunnel surgery already thanks v much
4,145 posts
Location: Edinburgh, Scotland (UK)


Posted:
Ever bought a lemonade or a coke? I don't even want to know about their margin...

And about the queuing, people do it for Harry Potter, too, although there's not even a limited supply while the iPhone's first delivery's already sold out. Wizard's First Law applies (People are Stupid). I suppose it gives them something to talk about, one woman was quoted saying it was like pregnancy rolleyes

"vices are like genitals - most are ugly to behold, and yet we find that our own are dear to us."
(G.W. Dahlquist)

Owner of Dragosani's left half


Fire_MooseSILVER Member
Elusive and Bearded
3,597 posts
Location: Scottsdale, AZ, USA


Posted:
side note: i heard a bunch of people were having problems getting service for their iphones. i suspect its due to everyone trying to get (whatever company)'s service at teh same time.

O.B.E.S.E.

Owned by Mynci!


DomBRONZE Member
Carpal \'Tunnel
3,009 posts
Location: Bristol, UK


Posted:
A 50% mark up on components isn't actually that much, which is why Apple also take a small slice of the line rental fees to compensate. Ever bought a bottle of water? Guess the mark up on that!

Rouge DragonBRONZE Member
Insert Champagne Here
13,215 posts
Location: without class distinction, Australia


Posted:
Markup on soft drink and bottled water is MASSIVE!

At my job#1, a glass of coke costs $3.
At my job#2, it will cos you $2.20.

How much does it cost us? Well according to my previous job; about 3 to 8 cents per glass (they were charging $3 a glass too...and were so stingy they made staff write down their consumption! rolleyes )

And as far as I know, Mount Franklin Water (very popular one here) costs them about 15c...and gets sold for up to $3. $3.50 if it's an event.

i would have changed ***** to phallus, and claire to petey Petey

Rougie: but that's what I'm doing here
Arnwyn: what letting me adjust myself in your room?..don't you dare quote that on HoP...


pkBRONZE Member
Lambretta Fanatic
4,997 posts
Location: United Kingdom


Posted:
The thing that bothers me is that this iPhone isn't actually SECURE!, I made a post about it in help several nights ago.

People are already able to hack into your iPhone, via it's web browser.

Personally I'd wait for a second or third generation.... but then I wouldn't buy one!! not with a measly 4 or 8 GB HDD... for €500-€600 estimated retail price here in Italy, I'd want 80GB... for that money.... to me it looks like I'd have to wait 6-10 years before they release an iPhone 80GB version.


I certainly don't understand the hype!... it's a phone/ipod go figure... a 2 day wait to be a first buyer!.. not like they will run out of stock if you just wait till the release date is it.

No one seems to have patience these days... it's all I want, I want and must be the first to have every thing.

Silver_BlazeSILVER Member
newbie
7 posts
Location: Dallas, TX, USA


Posted:
The same reason you don't buy or use any Apple product.

UCOFSILVER Member
15,417 posts
Location: South Wales



Fine_Rabid_DogInternet Hate Machine
10,530 posts
Location: They seek him here, they seek him there...


Posted:
Most bluetooth phones are at risk from stuff anyways. This isn't really surpiring anyway. I know the Blackberry has protection software though, so prehaps this is something Mac should look into.

In respons to firetom's original post though:

Uh... Duh.

Half the crap we pay for is overpriced. I just spent 50 quid on 30 DVDs as a christmas present and I still feel ripped off. How is it surpirsing that the iPhone is any different? Sure, its not an ideal world, but when has it been?

The existance of flamethrowers says that someone, somewhere, at sometime said "I need to set that thing on fire, but it's too far away."


MRCSILVER Member
Funky Blessings Daily
215 posts
Location: USA


Posted:
I honestly question MOST people's need for that stuff. I know a person who lives out on the road and camping. His blackberry is a convenient way to keep email and phone contact without having is laptop out all the time.

I would never have bought the iPhone because I think it's nothing but a status symbol. "I have a real need for a phone, that also holds a bunch of music, and can surf the internet really slowly AND has a touch screen, because that really makes the difference."
I need a phone that calls people. I need a phone that receives calls. The fact that they all have mother fuckin cameras on them now just means I can take a picture at incredibly short notice but that was never really a deal breaker. I just get the free phones my cellphone provider gives me.

LazyAngelGOLD Member
Carpal \'Tunnel
2,895 posts
Location: Cambridge UK


Posted:
the business speak for this is a 'differentiation strategy'

the theory: as long as they're providing a product that's different to thers on the market, more desirable (for whatever reason) then they can pretty much charge what they like.

the practice: Apple's competitive advantage centres around brand and innovation. In terms of R&D they're one of the more 'fluffy' companies. However I won't go into the LG furore or the irony of SDK being announced at the same time as android or even the agreement which SDK users have to sign

I'm not surprised at the price: if you look at who they're competing with it makes sense. Don't ever think that businesses don't have their survival, their director's bonuses and their shareholders' happiness as their top priorities.

The marketing plan will have been done quite carefully, making sure that they sell as many as they can for as much as they can. Hence even if they may had the technology for larger capacity phones now, they'd probably sell the smaller ones in stages so they could make more money.

We'll probably see the iPhone open up to different network providers once Apple reckons it's achieved market saturation or comes out with a next big thing.

The only way I can see it possibly being worth it for me is if my phone, Mp3 player, camera and computer all got destroyed in one night. And even then, I don't use contract phones because they're too hard to keep track of!

Because ActiveAngel sounds like a feminine deodorant

Like sex, I'm much more interesting in real life than online.

'Be the change you want to see in the world around you' - Ghandi


simtaBRONZE Member
compfuzzled
1,182 posts
Location: hastings, England (UK)


Posted:
most electrical products are sold at prices in great excess of the manufacturing costs. clothes companies have been doing it for years with much bigger margins.

any phone with bluetooth+3g stuff is a potential 'security' risk. would be interesting to know how many people who write articles/worried about this stuff use software on their computers which carries as much risk, possibly even more.

i reckon its a case of protect yourself or STFU tongue2

"the geeks have got you" - Gayle


MikeGinnyGOLD Member
HOP Mad Doctor
13,925 posts
Location: San Francisco, CA, USA


Posted:
I have mine and it's got it's issues. But I do like the fact that I can be standing anywhere and go "Is there a decent Indian place around here?" and instantly know where one is. Or look up times for the nearest swim practice. Or get any other information I want. I know there are other phones that can do stuff it can't, but it just does it so seamlessly. Especially as a mac owner.

-Mike

Certified Mad Doctor and HoP High Priest of Nutella



A buckuht n a hooze! -Valura


Fine_Rabid_DogInternet Hate Machine
10,530 posts
Location: They seek him here, they seek him there...


Posted:
So I've just got an iPod touch and I'm cpmpletly on love with it grin in fact I'm using it right now to post this. Happy days!

So yeah I can see why people want iPhone's. If wifi is great, completly mobile must be fantastic.

The existance of flamethrowers says that someone, somewhere, at sometime said "I need to set that thing on fire, but it's too far away."


LoewanBRONZE Member
and behold!
464 posts
Location: Liverpool, United Kingdom


Posted:
LOL @ the discussion. Its a phone! If it suits your need then you use it! If not then you get another model! It doesn't warrant a freaky discussion on modern consumerism!

Why let your body be a temple? When it can be a theme park?

Wii Console Number: 3294 0297 7824 7498



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