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23-10-2012, 04:10 PM
(23-10-2012, 04:03 PM)CityFarmer Wrote: Apple's BOM for iPhone is competitive, there is no reason Apple can not win on price competitiveness
16G iPhone 5 BOM estimation was slightly more than US$160, while selling price (w/o subsidies) when first launched was approx. US$600-650. There is no reason to believe that other smartphone manufacturers can outbid Apple for BOM cost.
for people in developed countries, it won't be a problem to pay US$600 - 650 for BOM US$160 for a quality product.
but the population is much larger in developing countries(China, India & Indonesia), where it is difficult for Apple to sell IPhone 5 at current price in a large quantity. Apple can sell, but not a lot.
It is not the time yet, as the smartphone chips are still expensive and relatively rare.