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A breakdown of the cost of an iPhone before and after tarrifs on various components | iFixit & WSJ (lemmy.ca)

submitted 4 days ago by [email protected] to c/[email protected]

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Source: https://www.wsj.com/tech/personal-tech/iphone-apple-tariffs-china-bb20c7a3

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[–] [email protected] 18 points 4 days ago (1 children)

Believe it or not, hardware is rarely a profit leader. You almost always make your money back on subscriptions and ad revenue. Hardware is crazy expensive to make, as much as we love to look at $20 prepaid Android phones and write flagships off as being overpriced, they are taking a massive cut on hardware hoping to make it back on your service. Those prepaids are usually $150+ in actual hardware cost.

[–] [email protected] 14 points 4 days ago (1 children)

If this costs them 549 per the image, and they are selling it for 1099, they are definitely making a profit.

[–] [email protected] 16 points 3 days ago

Based on the image this is for parts only. This doesn’t look like it takes into account everything else involved such as shipping, packaging, marketing, research and development and much much more.

You can still argue iPhones are overpriced but you also have to factor in more than just price per part.