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Is the iPhone 13 series a bargain? 14 percentage points higher cost rate than iPhone 4S

Image of iPhone 13 series

 
The analysis result shows that the cost ratio of the iPhone 13 series (the ratio of the manufacturing cost to the selling price) is about 37%.
 
That’s 14 percentage points higher than the iPhone 4S 10 years ago, which could be a bargain for consumers.

IPhone 13 series with a cost rate of about 37%

According to the analysis of Nikkei Asia, the manufacturing cost of the iPhone 13 Pro Max 256GB model was 438 dollars (about 49,907 yen), and the manufacturing cost of the iPhone 13 512GB model was 407 dollars (about 46,375 yen).
 
Cost rate of iPhone 13 etc.

 
Comparing this with the selling price, the cost rate is 36.5% / 37.1%, respectively.
 
Compared to the cost rate of 23% for the iPhone 4S, the cost rate for the iPhone 13 series has deteriorated by 14 percentage points in 10 years.
 
The cost of each component is rising, for example, cameras are 10 times higher, semiconductors are 3 times higher, and the total is 2.5 times higher.
 
Nonetheless, the price has only increased by 60%, and the iPhone 13 series may be a bargain for consumers compared to its predecessor.
 
Another report also states that the manufacturing cost of the iPhone is rising year by year.
 
However, in addition to manufacturing costs, the manufacture and sale of smartphones requires labor costs, R & D costs, marketing costs, etc., and the cost rate does not directly indicate the rate of return.

Still lower cost rate than other companies

On the other hand, the cost rate of the iPhone is still good compared to the smartphones of competitors.
 
According to the report, Sony’s Xperia 1 III is 37.9%, Xiaomi’s Mi Mix Fold is 38.5%, Samsung’s Galaxy Z Fold 3 is 39.4%, Google’s Pixel 5 is 44.9%, and Huawei’s Mate 40E is 51.0%.
 
According to a Counterpoint survey, Apple’s share of the number of units in the second quarter of 2021 (July to September) was only 13%, but its profit share was 75%, which is far ahead of other companies.

 
 
Source: Nikkei Asia via iMore
(Hauser)
 
 

I want to read together iPhone 13 series related special feature

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  • Source: iPhone Mania

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