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|21st February 2013, 08:57||#1|
Join Date: May 2010
Blackberry Z10 beats Apple's iPhone on components mark up
It seems that the smart phone maker formally known as RIM has been learning a thing or two about making cash from Apple.
CrackBerry has broken down the true cost of the BlackBerry Z10 into components and worked out that profit being made is much greater than Apple dares to charge on its over-priced iPhone.
If you were trying to build a Blackberry from the parts it would set you back $153.69. But Blackberry will charge you $827.17. This means that, excluding marketing and other costs, for every phone sold, Blackberry makes $673.49.
Here is the breakdown:
Flash storage (16GB) $9.00
Other components $ 21.00
Remaining major materials $ 59.00
To make matters worse, the costs of owning a Blackberry on a contract are also pretty heavy. If you buy one from Vodafone, for example, it will cost you £37 per month (plus £69 up front) - so the phone ends up costing you over a grand.
The iPhone 5 costs around $206.56 to make according to tear downs from research firm IHS, and each iPhone costs $819.42 to buy from Apple. This means that Apple makes $612.86 profit on each it sells.
Given that Apple was considered the mark-up king for its products, the fact that Blackberry has decided to take the game to a whole new level is interesting. Of course it is unlikely that Blackberry will ever sell as many of its mobile toys as Apple.
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