What is Digg?147 Comments
- David513, on 10/30/2007, -2/+72No, Apple doesn't "make" $831 per iPhone. It grosses $831 per iPhone. Costs come out of that. The word "make" means profit in this context, and it's the wrong word. But it doesn't sensationalize things as much if you subtract their cost of good sold, I guess.
- airwalkery2k, on 11/02/2007, -7/+43And that's why you are stuck with AT&T, iPhone owners.
- travhimself, on 10/30/2007, -3/+38Every time I see one of these, I'm frustrated that few of the costs are taken into account. Even Gizmodo still seems to have arrived at a "profit" of $580 after deducting $250 in materials costs. They make mention of the R&D, marketing, and business overhead costs, but they seem to dismiss these costs entirely. "Net profit" is arrived at only after ALL costs are deducted. Yes, Apple is still making some serious money off these babies, but I doubt they're netting more than the retail cost of the device.
- glialisback, on 11/03/2007, -8/+37AT&T is the best provider for my area and many areas. Don't assume everyone hates AT&T.
- inactive, on 11/03/2007, -4/+30You are on Digg. You hate AT&T. Perhaps you just don't know it yet.
- sockpuppets, on 11/02/2007, -3/+29Was there an iGun held to your head when you bought it?
- CraigJ, on 11/02/2007, -1/+17And that's why I bought more stock in Apple.
- Rahodeb, on 11/02/2007, -4/+20It's called free market economics. You charge what the market will bear. It's not like anyone can't live without an iPhone, so if you feel like you're getting screwed, then don't buy it. I don't know when corporations making profits became such a rotten thing, but that is how they pay for employees, goods, services, fund new projects, and return a profit to the investors willing to take a risk on their company.
- zweben, on 11/02/2007, -2/+18There = location
Their = possession
They're = they are - orlyfactor, on 11/02/2007, -2/+15Thank you Alan Greenspan.
- AbsurdParadox, on 11/02/2007, -3/+13So?
If you don't like Apple's agreement with AT&T, don't buy an iPhone or use AT&T's services. If you have a problem, but continue to use them, anyway, you are simply a hypocrite. - monsterofNone, on 11/02/2007, -2/+11i've got an iPhone, i'll admit it, and the daily iPhone pandering story of the day is getting old. we know that x percent of digg loves iPhone and y percent of digg hates iPhone. we've come to recognize the paid MS shills and the unpaid apple apologists. we just don't need another gizmodo or engadget flame-war-inciting piece of drivel every single goddamn day.
- ShuttleDisaster, on 11/02/2007, -1/+8did you even read the article jpvideo? ATT payments doesn't mean your monthly bill, it means ATT is paying a fee to Apple per iPhone in exchange for ATT exclusivity rights.
- bullhead2007, on 10/30/2007, -3/+10Even then a 100% profit margin is INSANE in the electronic hardware industry. I know someone who works for a computer reseller and if they sold hardware at that much profit they'd go out of business.
- themattreid, on 11/02/2007, -3/+9Hmm, do you know anyone that works for a corporation other than the Burger King that you work at? Most of Americans work for corporations and that's how we get paid - inventing, improving, selling, manufacturing EVERYTHING YOU OWN. STFU.
- uhbeta, on 11/02/2007, -4/+10How does ATT and Apple's contract or who pays whom however much money even matter to you or me as a consumer? You know the price of the iPhone and you can easily look on ATT's webpage to find out what a service contract costs. If you don't want to pay that amount then don't. How much ATT pays Apple during your contract period DOES NOT AFFECT your experience as a consumer.
If you want to use the iPhone on t-mobile's network, then buy one and unlock it (at your own risk) or move to Europe and buy one there. - revjustin2, on 11/02/2007, -7/+13iPhone users don't like having to admit that they were willing to take in the arse for yet another consumerist status symbol disguised as "innovation".
- revjustin2, on 10/30/2007, -2/+8I don't think that corporations making profits was ever really the issue, it's what corporations do to make those profits. Profitability does not justify unethical behavior. So, that being said, is Apple doing anything unethical by making money off their 100% optional product? NO.
- bullhead2007, on 10/30/2007, -2/+8It's cool that I'm getting dugg down for speaking the truth and all, but it's the truth.
I'm not blaming apple for some how making an extremely profitable device. I'm just saying in any other field those kind of profits would be considered robbery.
Good for apple for making that much money. No wonder they're so big on keeping it locked with AT&T only, that's what AT&T is paying them so much for. Puts things into perspective that's for sure. - inactive, on 10/29/2007, -0/+5Craig...you ned to brush up on your abacas skills.
- davidrools, on 11/02/2007, -0/+5School: you should go there.
- michaelzhao, on 11/02/2007, -0/+4If "M$" did this, the comments would be: "OMG... M$ is so greedy!!!! They rape consumers out of their money!!!!1111"
Substitute M$ for Apple and you get "Apple's business plan is absolutely genius... Steve Jobs is amazing at making money! The innovation in this phone is absolutely staggering! Who needs 3rd party content anyways?"
Digg in a nutshell. - airwalkery2k, on 11/02/2007, -1/+5That must be why people are trying to get their phones unlocked and off of the network.
I'm sure AT&T may be fine for some people, but my point was without this exclusive deal, consumers would have a choice in their carrier. - DaceDiath, on 10/29/2007, -1/+5Dont forget about the development costs.
- spootmonkey, on 11/02/2007, -3/+7time to buy some more apple stock
- CushyL, on 11/02/2007, -0/+4Nowhere in your rambling, incoherent response did you come close to anything that could be considered a rational thought. We are all dumber for having read it. I award you no points, and may God have mercy on your soul.
- supermanred, on 10/30/2007, -0/+3Too late, its on its way to shake hands with Google soon.
- HotAirBaffoon, on 10/30/2007, -0/+3Financial Accounting Standards Board huh? Since when do they break down financial statements. This comment comes from Gene Munster at Piper, not FASB. FASB sets the accounting rules known as GAAP (Generally Accepted Accounting Practices). The author loses all credibility on that lack of research alone.
- monsterofNone, on 10/29/2007, -0/+3AT&T, as with cingular before them, has always given me great service. i can't see what the bitching is about. are there really AT&T haters? that seems weird and arbitary.
- Qumahlin, on 10/30/2007, -1/+4What does Apple have to do with anything? You seem to forget the majority of the population shops for looks and ease of use. For $399 the iPhone is the hottest looking and easiest to use device. Why don't you go do price comparisons to other handsets so that you can see it has nothing to do with who made the iPhone.
Verizon Wireless:
Moto Razr - 2 yr Contract - $249.99
Moto Q - 2 yr Contract - $249.99
XV6700 - 2 yr Contract - $299.99
Palm Treo 700p - 2 yr Contract - $399.99
AT&T:
Tilt - 2 yr Contract - $399.99 (currently has rebates bringing it to $299.99)
AT&T 8525 - 2 yr Contract - $349.99
Blackberry 8820 - 2yr Contract - 299.99
Say what you want, not a single one of those phones is easier to use, or looks even half as nice as the iPhone. Sure some of the phones have far more features and are more powerful, but the bottom line is Apple knows to cater to the AVERAGE consumer. They know who their target audience is.
Whats appalling is that it took a kick in the ass from Apple for other cell companies to even begin considering this. Whats ridiculous and idiotic is companies like Palm thinking apple wouldn't have a chance. Companies like Palm and Blackberry spent far too long catering to the business crowd. They forgot all about the average consumer who didn't really need a smartphone, but would buy one if it looked sexy enough. - GREEDOnvrFIRED, on 10/30/2007, -0/+3If you enjoy your product/service and you think it is worth what you paid/are paying for it then you got a good deal. Value is not based on how much a company makes off you. Value (in this case) is what you paid versus your satisfaction. Using that equation I am elated.
I once had a friend who did a spec voice over for a possible SONY ad. The pay was to be either 500 dollars or 500 CDs from their catalog. He took the CDs (on my recommendation) and people told him he got ripped off. "Those CDs probably cost SONY 10 cents each" the said, but the point is my friend got a stack of CDs that would have cost him 5 grand. Value is not "how little can I give the company." It's how much can the company give me." - albundy, on 10/30/2007, -1/+4Oh that evil Apple. They made a deal that made them some money. Why do you think they are in business? I'm no Apple fan, but every one of these folks bought the iPhone with the full knowledge that it was never intended to work on any other network besides ATT. If you don't like it, don't buy an iPhone. I most certainly didn't.
- nnagflar, on 10/30/2007, -0/+3No no, keep rambling. Seriously, it was about to make sense.
- nakani, on 11/02/2007, -0/+3If you support illegal, warantless wiretapping of your phone and internet service, and giving all of your personal data over the the government then by all means, by an iPhone. Otherwise, don't by one. That's how the free market works.
- ubergeek09, on 11/02/2007, -2/+5Your a ignorant tool, how is a phone that just looks pretty and lacks such normal features such as copying and pasting amazing..
- jkoke, on 10/30/2007, -1/+4The reason is that Apple doesn't just sell hardware, they sell experience. It's the same reason that Starbucks can sell the same cup of coffee for $4 that Dunkin' Donuts sells for $0.49 -- people buy experience, and they're willing to pay a premium for it.
- sockpuppets, on 11/02/2007, -2/+4Wait... what?
- SouthsideIrish, on 11/02/2007, -1/+3Actually Tmobile would be better, since you get wifi calls for a great price. What is it, like 9 bucks a month.
- Terc, on 10/29/2007, -3/+5Well put, finally, someone else seems to understand the difference between "profit" and "gross"
- serpy, on 11/02/2007, -3/+5makes my hacked iphone even sweeter :)
- Repeater2000, on 11/02/2007, -3/+5Apple are teh best!!
- jkoke, on 11/02/2007, -1/+3Thank you for speaking some sense.
- Rahodeb, on 10/30/2007, -0/+2There doesn't need to be a social consequence, that's complete communisty stupidity. What happens when you buy an iphone is that you are trading with Apple and AT&T. You decided that your $400 (+ contract), and all the time it took to make it, was worth trading for an iPhone. The fact that much of that is profit should be meaningless in that transaction, because it was worth it to you.
The consequence of Apple selling expensive items is that someone will make something equivalent or better and sell it for cheaper, which is how prices come down. This is how an economy survives. - Gabberwok, on 11/02/2007, -3/+5This information is wrong. Apple does not take in $18 per month (they get $11). Buried because this is a duplicate of better researched articles.
- supermanred, on 10/30/2007, -0/+2And I doubt they even get the 11 in whatever article you are citing.
- jkoke, on 10/30/2007, -1/+3Corruption should be investigated and prosecuted when found, but nothing in this report has anything to do with corruption. Apple created a highly desirable product and is milking it for a maximum profit. There's no "screwing of the consumer going on," just a lot of consumers who wish the iPhone were cheaper and begrudge Apple making a huge profit, instead of selling it for less money.
- kignjr3, on 10/30/2007, -1/+3This is a bad thing? Apple makes money selling other hardware and software too!!!! OMG!!!!
What do you think your car dealer made with that last car you bought? - jpvideo, on 10/30/2007, -0/+2Sure there is.. By ATT, who's money do you think they are using for these EXCLUSIVE iPhone rights?
- hasansexy, on 11/02/2007, -1/+3"That adds up to $432 for each two-year contract, or, including the price of the phone, $831 per iPhone."
Yeah because there are no production costs... - sgtpppr, on 10/30/2007, -0/+2You know your marketing is good when people will practically kill each other over your product.
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