Someone, somewhere, without the phone being released to the public, has come up with a price list of how much the Apple phone will cost to manufacture, which is somewhere around 250 USD. [Gizmodo - Apple iPhone]
Now this poses some interesting issues:
- Does Apple know this? Maybe they are being charged a premium to manufacture this device are are paying more than. This will come as a shock to Apple if its true
- Assume Apple does know this, and it really costs less because they are ordering bulk plus future orders keep the manufacturer keen to keep Apple happy. Again assume that the retail price - the actual price quoted in their presentation - is the price people will pay, this means that Apple sells at a premium and Cingular isn’t subsidising the phone.
- If Cingular are subsidising the phone, then Apple are making even more per unit, which means its in Cingular’s interest to make the phone popular. Same applies to other carriers. But, if Apple still makes money per unit sold, then would they also sell units without contract for the same price. Either way Apple sells units. Are they interested in unit take up or do they have another agenda, lets suggest learning curve for producing mobile handsets.
- In time will the retail price of the units come down? This would affect any exclusive image the phone would have (The Motorola Razr effect) but means the phone is widely used, more people buying into the Apple sub-culture.
- Finally the operating system. Would Apple gain from selling OSX for mobiles to any manufacturer? They would certainly gain from allowing more 3rd party software to be developed, or are they more interested in selling desirable hardware.
- Then again, is it really going to sell. True, its a fabulous piece of engineering, however, its an awful lot of money to spend on a phone that will be even more tempting for thieves to steal, just like iPod thefts. Do you want the hassle and trauma of having your fab phone stolen.
Personally, I find it too expensive for a gadget that will never meet its full potential. Maybe the third generation iPhone (given the evolution of the iPod) might have appeal, assuming the 3G version comes out. But the question that lingers in my mind is how much does it really cost to make per unit 