On 03/10/13 15:07, Roland Perry wrote:
In message , at 14:21:56 on Thu, 3 Oct
2013, The Natural Philosopher remarked:

Cost of iPhone £450

I think he means "retail price".

Cost of *making* the new iPhone 5c using Chinese labour. USD 173

What costs is R&D and marketing. Not what's 'inside'

Amortised over tens of millions of units - "not a lot".

IF the sales are achieved. AND te R&D costsd are notmassive to begin with.

Investment in large LCD plants used to produce LCD screens is only
JUST beginning to be overtaken by net cashflow some 15 years later..

a billion investment in R&D that onlt results in ten million sales is
still $100 per unit. plus the cost of borrowing it to start with.


And marketing..sheesh 90% of the cost of many products is in te marketing.

--
Ineptocracy

(in-ep-toc-ra-cy) €“ a system of government where the least capable to
lead are elected by the least capable of producing, and where the
members of society least likely to sustain themselves or succeed, are
rewarded with goods and services paid for by the confiscated wealth of a
diminishing number of producers.