CNN: BlackBerry Z10 parts add up to $154
0. phoneArena 16 Feb 2013, 17:14 posted on
Hey, CNN is good for more than watching endless car chases down the freeways of California or for watching the latest national tragedy involving a handgun and innocent victims; CNN Money recently priced each component used in the BlackBerry Z10 and it all added up to $154 althiugh that does not include assembly and marketing costs...
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1. rusticguy (Posts: 2696; Member since: 11 Aug 2012)
So this phone shouldn't cost more than $600.00 which it will cost in any case after 6 months .. it could be lower also :)
14. jsdechavez (Posts: 651; Member since: 20 Jul 2012)
Well, you can add up cost for Research & Development, Production cost, Marketing, Logistics etc.. and of course the profits. For new phones R&D really does keep the price up.
2. Kal-el (Posts: 81; Member since: 14 Dec 2012)
So...if we say add another 20-25 bucks to cover 1-1.5 hours of labor to assemble (taking max price i know it probably cheaper) and another 21$ for advertising cost spread across all units ...aka economy of scales ...so roughly 200$ give or take...(again taken Max values) IF nexus 4 cost 299? and 349? google/LG making only 100- 150$ dollars? wow Google's price amazing if that's the case. I guess their going for volume over profit margin per unit...
3. MikeG77 (Posts: 348; Member since: 24 Nov 2008)
Not even a guess in regards to volume over margin. I think the cost of manufacturing is actually higher because there not factoring in shipping charges, warehousing the inventory and insurance. The amount of margin that is lost by selling a device cheaply is negated by the amount of money generated on respective app stores especially in the case of Apple and Google.
10. Kal-el (Posts: 81; Member since: 14 Dec 2012)
Right makes sense...but iphone is like 800-900$ so what u say makes perfect sense for google...but i don't think it applies to apple. I think since google doesn't have physical stores like apple the lost of profit margin in the low 299-349 is negated with the saving of not having psychical stores i.e. rent insurance etc etc.
11. MikeG77 (Posts: 348; Member since: 24 Nov 2008)
In regards to Apple they have the highest margin per unit sold because they have the supply chain locked down and the subsidies are very high compared to other companies. Apple doesn't have a ton of stores to worry about and the ones they do have are in more affluent areas where disposable income is not an issue. The App store though is where there making a killing because when an app is sold the developer gets 30% and Apple gets 70% which is completely nuts.
12. Kal-el (Posts: 81; Member since: 14 Dec 2012)
WOW that is insane 70-30 ratio is bollocks. Kool man thanks for the info it's rare there's someone who knows what their talking about on here LOL
4. nikenturd (unregistered)
Severely overpriced omg... hey BB, want to stay in the game.? lower your prices since you arealready 6 months behind to LG, HTC and Sony flagships...now we have the much anticipated Galaxy S4 to be announced in March....well, things arent going all too favorable aint it?
5. iushnt (Posts: 376; Member since: 06 Feb 2013)
People don't complain about the price being too high for Z10..See iphone, that is the one which should be much cheaper..But again pricing is not judged this way.. Their engineer's fees are much higher too. SOFTWARE engineers, hardware engineers, other 1000s of staffs, ware housing, transporting, marketing, taxes, real state rents and holding costs, lawyer fees and I think this list goes too long where we should also include utility fees, fixed assets etc and finally their desired profit margin.. Of course all these expenses will increase the price. I don't know where BB assembles their parts but iphone is assembled in China in much lower cost and the aluminum is cheaper too compared to polycarbonate of Z10
6. nikenturd (unregistered)
The problem is...not too many apps out there to justify the premium price....why would first time buyers choose the Z10 over a much cheaper Nexus 4 or an S3? OR can BB convince premium Android handset owners to jump ship? it's not all about the hardware specs....Blackberry's business strategy is plain and outright delusional, they Arent established YET in the smartphone universe,hence, they have absolutely no right to put themselves right along Samsung or Apple
9. iushnt (Posts: 376; Member since: 06 Feb 2013)
You got the point too.. To capture the market they should keep the price low even if they are on loss just to boost market share..
7. Nikolas.Oliver (Posts: 1260; Member since: 01 Jul 2012)
Bb 10 pricr is too damn high given that the nexus 4 can give you more
8. jcpwn2004 (Posts: 314; Member since: 18 Jan 2012)
lol, and people are spending over 1k for this on ebay....Maybe the final product is worth it
13. ronjr123 (Posts: 53; Member since: 16 Feb 2012)
If you ask me, they are all over priced. I blame this on the subsidized phone model used here in the US. If we had to purchase these at full retail, then each device manufacturer would have to set pricing to attract customers. Until this is no longer a practice, the full retail price will remain high.
But on the other side of the coin, this model has also helped to bring innovation faster to the masses. Without the subsidy the sales numbers wouldn't be as high and people would hold on to older ones longer
Google has proved that people are willing to pay for an unsubsidized device if priced reasonably. Will LG ever release the profits gained by just the nexus 4? That would be interesting to see, or is Google subsidizing that phone also?