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Teardown: 5s build costs at least $199, 5c $173

$1???? Sorry, you’re wrong. Any idea how much tooling and test fixtures cost for production runs in the 100’s of millions? Its not cheap. And no….tools once made do not last for the entire production run. They have a limited life span. There is a whole slew of costs not accounted for here. THings like corporate op-ex. Yes….iPhones pay for toilet paper in the bathrooms in Cupertino. iPhone’s are also probably carrying some burden for other Apple products. There are royalties to be payed on things like…bluetooth, WiFi, cell technology. There are warranty and return costs burdened on every iPhone. I.E. every iPhone sold carries a cost burden for another iPhone that may fail. I could go on and on but to say its merely cost of goods is simplistic.

Posted by Rand on September 24, 2013 at 1:26 PM (PDT)

Teardown: 5s build costs at least $199, 5c $173

The only cost is not the sum of the parts, but you are right, Code Monkey, over the long term, if these phones sell in the quantities Apple expects them to, the bill of materials will be the vast majority of the cost.

What I find amazing is the absolutely tiny cost of the Flash in these devices.  Only $19 for 48 GB!  This is absolutely bargain basement Flash, certainly, but it has to be higher quality than cheap usb flash drives, right?  So cheap.  I really hope that Apple lowers the cost of the higher capacity models with the iPhone 6.

Posted by 0megapart!cle on September 24, 2013 at 11:48 AM (PDT)

Teardown: 5s build costs at least $199, 5c $173

When you’re moving as many units as Apple is, effectively, the only cost is the sum of the parts.

They will move in the neighborhood of a hundred million or more of any particular iPhone over it’s 3 year lifespan. Even if it cost them 100 million to bring it to market (which you know it didn’t), that’s still only adding $1 to the cost.

Posted by Code Monkey in Midstate New York on September 24, 2013 at 10:44 AM (PDT)

Teardown: 5s build costs at least $199, 5c $173

Every time I read one of these articles about how much it costs to build something I get infuriated. Could one of you “journalists” write an article that gives an accurate picture of what it REALLY costs to bring a product to market? (Sadly….iLounge is not alone in perpetuating these stories) All products, not just iPhones cost a lot more to “make” than just the cost of their parts.

Posted by Rand on September 24, 2013 at 10:16 AM (PDT)

Apple offers iPhone 5s in-store pickup, availability check

I am still rocking with an iPhone 4 (not S) that I had for nearly 3 years, so I am interested in upgrading to the 5s, especially after reading the review on here.  Thus, I did a quick check around myself in the Washington, D.C. area.  I am interested in the 64-gig model, so that is what I concentrated on.  Seems the “space grey” model is still fairly plenty full.  So is the “silver” model.  However, the “gold” one is next to impossible to find as NOBODY had it in stock.  I will admit the gold one did actually have me intrigued as it is something new and different from the usual black and white ones.  However, I will probably end up with the black (“space grey”) one.

Posted by SkiBumMSP on September 23, 2013 at 11:14 AM (PDT)

Apple TV 6.0 update pulled after bricking complaints

Mine needs an iTunes restore but I have to borrow a micro USB cable from someone to do it hmmm

Posted by Jeff on September 23, 2013 at 8:35 AM (PDT)

Apple intros space gray iPod touch, nano, shuffle

To Max Claster, the 16GB model lacks a rear camera and flash. The microphone is also moved to the top since it won’t be next to any rear camera.

Posted by Want one xP on September 23, 2013 at 8:02 AM (PDT)

Apple TV 6.0 update pulled after bricking complaints

The update failed twice but on the third try it worked.  No issues with my Apple TV since.  It’s our main entertainment hub, so I’m glad we had no issues.

Posted by Dp on September 23, 2013 at 6:52 AM (PDT)

Apple notes "incredible" demand, iPhone 5s in short supply

Since at my local Apple store, they had run out of iPhone 5S Gold by the 23rd person in the queue, I’d say the “shortage” is deliberate policy. What’s more other phone retailers are complaining while they have crates of the 5c they cannot sell in every colour, they have only a small number of slate-grey handsets and no silver or gold ones at all.
Apple either wrongly predicted that everybody would plump for the 5c (or buy one if a 5s wasn’t available), or are trying to over-hype the phone by making them hard to get.

Posted by Apple TV Victim on September 23, 2013 at 12:50 AM (PDT)

Apple releases Apple TV Software Update 6.0

CNET is reporting the update has been pulled for bricking devices among other complaints.

Posted by hoshieBIOTpod in Havelock, NC USA on September 22, 2013 at 11:57 PM (PDT)

Some Verizon iPhone 5s units having SIM issues?

THERE IS A WAY OUT !!

I had this issue in the morning (with my new 5S) as reported on this thread.

In the evening, went back to Apple store (VZN tech folks were still there). VZN guy advises Apple salesperson to cancel my purchase and ring in back the same phone in a specific way (as as off contract phone ) to override/ bypass the existing software glitch in VZN. After which, was able to successfully swap phones retaining current phone line.

Here is timeline for your read:
8:00 am in the line at nearby Apple Store for a 5S, Gold and Silver model stock deplete very quickly in 30 min !
8:00 to 10:40 in the line for my turn
10:40 AM into the store with Apple Buleman ! for space gray 5S
10:40 AM transaction complete and Apple guy unsuccesfully tries to activate the phone. He tried to get a new nano-SIM card as well, but that did not help

11:00 AM Verizon tech in the apple store in-takes the issues
11 AM to 12:40 PM: Verizon tech tries to troubleshoot without any result and pretty much gives up
12:40 PM Left the store with 5S without activation
2 PM: Called Apple 1-800 number, they tell me it’s Verizon’s problem
3:45 PM: Called Verizon Tech support - they advise me to walk into Verizon store to get the phone activated
4 PM: Verizon service tech in store tell me the phone is defective and advised me to return the 5S back to Apple and stick with my old phone !
5:30 PM: Back in Apple store to try for one last time before I give up
6:00 PM: Verizon tech in Apple store advises the Apple guy to cancel my iPhone 5S transaction and re-sell the same phone by overriding something (got store manager go-ahead) and puts in the transaction as a new phone without contract for the Apple system to ‘correctly’ transmit the details so that Verizon system doesn’t get confused !!
6:30 PM: 5S up and running !!!

Just been a joy ride !!

Posted by Vamsi on September 20, 2013 at 6:16 PM (PDT)

Some Verizon iPhone 5s units having SIM issues?

Since 10:30 Am EST I’m whit this second level tech sup I talk already whit 4 different techk’s they don’t know what they doing for sure it’s 6PM now who thinks this will be fixed today ....who cares about you pay a 700 bucks for a phone, you are the stupid spend all that money and the people of the other side at the line laughing on you for sure VRW SUCKS!!!!!

Posted by Anderson Brazil on September 20, 2013 at 3:03 PM (PDT)

Some Verizon iPhone 5s units having SIM issues?

This has been happening to me since this morning. Verizon kept me on hold for 30 minutes and I have up.

Posted by Jason P on September 20, 2013 at 1:55 PM (PDT)

Some Verizon iPhone 5s units having SIM issues?

Same here Invalid SIM getting really annoying

Posted by Mark on September 20, 2013 at 12:50 PM (PDT)

Some Verizon iPhone 5s units having SIM issues?

holy crap, they fixed it!

I’ve just randomly hit the “Try Again” button on the activation screen, and it worked!

Posted by Goldy on September 20, 2013 at 12:43 PM (PDT)

Some Verizon iPhone 5s units having SIM issues?

1st I was on with VZW tech support for 2 hours…no luck. They then directed me to go back to the Apple Store. Did that and there were Verizon Reps at the apple store and they said they are aware of the issue and they are working on its resolution. This was @ 12:30 EST…it is now 3:15 EST and still cant use my new 5S.

Posted by MP on September 20, 2013 at 12:17 PM (PDT)

Some Verizon iPhone 5s units having SIM issues?

Same issue, 64GB White iPhone 5s on Verizon.

After trying Apple Care (and abandoning them - the guy did not even realize Verizon shipped sim cards now) I went through Verizon, then Verizon Level 2 tech support, and then they directed me to some senior tech support guy at Apple who seems pretty sharp. He’s talking to their back-end engineers to try and figure out what’s going on.

It does seem to be an Apple or iPhone issue though. The Verizon guy tried transferring my service to the sim that came with the 5s, and that sim then worked in my old 5 without a problem.

I figure that I have until about 7-8pm before I take it back to the Apple store and try to get them to reserve me a replacement from whatever stock they get in the next few days.

Posted by Goldy on September 20, 2013 at 12:15 PM (PDT)

Some Verizon iPhone 5s units having SIM issues?

same issue , I cannot return and get a new one as the stock is over now.

Posted by MK on September 20, 2013 at 11:49 AM (PDT)

Some Verizon iPhone 5s units having SIM issues?

Yes, had this issue with my iPhone 5s this morning !
Totally disappointed with apple and verizon.

Such a basic thing, they failed with QC

Posted by Vamsi on September 20, 2013 at 9:57 AM (PDT)

Apple's Cook talks new iPhones

@CM: Now that I’m into my 6th hour of a caffeine buzz I finally get what you’re saying.

Re-skinning last year’s hardware let’s them use an existing design (and inventory) while generating some market-stoking hype at the same time.

Apple could have kept the iPhone 5 16GB around at $99, but oddly enough I think they’ll sell more of that same hardware dressed in Easter colors.  And all they had to do was shave a buck or two off the cost, and a few million units later they look like geniuses (which is not hard to do when you’re dealing with a public that gets all giddy over colors).

Not only that, you take a certain percentage of buyers who don’t want a “juvenile-looking” plastic phone and they’ll spring for the new hardware since last year’s 5 is not a choice.

Genius?  I don’t think so, just Product Marketing 101 ... with a little Kool Aid buzz to keep your eye off the ball.

Posted by rockmyplimsoul on September 19, 2013 at 2:01 PM (PDT)

Apple's Cook talks new iPhones

Why does this site think that the time zone is PST, when it is PDT?

Posted by Ally on September 19, 2013 at 11:28 AM (PDT)

Apple's Cook talks new iPhones

To clarify since upon re-reading my post for the nth time finally realized you could misconstrue the part about “same price points”:

Last year’s model iPhones have always sold for $100 less than the current year. However, you used to actually get all the glitz and polish of last year’s model. This time they stuck the innards in a cheap plastic chassis which lowers manufacturing and support costs for Apple, lowers quality for consumers, and are branding it as new while still charging the same price they always did for the previous year’s model, yet they have the chutzpah to claim it’s a lower cost iPhone.

Posted by Code Monkey in Midstate New York on September 19, 2013 at 8:58 AM (PDT)

Apple's Cook talks new iPhones

@2: Read my post again. You completely misunderstood.

Posted by Code Monkey in Midstate New York on September 19, 2013 at 7:51 AM (PDT)

Apple's Cook talks new iPhones

Same price point? The iPhone 5 did not sell at $99/$199 when it was new, it sold at the same $199/$299/$399 points as the new 5S.  Perhaps later, through special 2nd party promotions it sold for less, but never $99 from Apple.

Posted by rockmyplimsoul on September 19, 2013 at 7:38 AM (PDT)

Apple's Cook talks new iPhones

“and we figured out a way to do it at a lower cost.”

Really? Because from where I’m sitting it looks like you’re selling last year’s model phone at the same price points you always have, only this time you decided to treat your customers like idiots and slash manufacturing and support costs by sticking it in a cheap plastic shell and branding it as new.

Same price to consumers, lower quality to consumers, higher profits to Apple, and free press coverage for old hardware; genius.

Posted by Code Monkey in Midstate New York on September 19, 2013 at 7:27 AM (PDT)

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