Yeah, I doubt this is accurate.
I scanned through the report, but couldn't find the info, but did they take into account component price breaks?
Yes, you pay $1 for component X if you order 1 or 2. If you order 1 Million at a time, it goes down to $0.30 (for example).
Also, it is very difficult to estimate accurately what the actual bare PCB costs. There are many, many factors involved:
- How many layers?
- Which materials?
- What plating is used?
- What is the tolerance that they want?
- What type of vias (through, blind, capped and filled, back drilled, etc.)?
- Integrating flex PCB pushes up the price
- How large is the panel and how many PCB's per panel
- What type of bare metal testing do they expect?
Then they did mention other costs are not included, but just to give an idea of what else is required:
- NRE, or Non-recurring Engineering. This is the time and money spent on R&D, and doing the actual design work, reviews, fixes, configuration, all before you release the design to be manufactured.
- Assembly. Yes, assembly is automated, but somebody must load components into machines, and oversee the process.
- Testing and testing infrastructure. The assembled parts must be tested in some way. Test Jigs need to be built and used.
- Tools and infrastructure. Any tools or infrastructure purchased to successfully design, build, test and sell these, will be capitalized into the costs.
- Marketing
- And many other factors.
As a rough guess, I would assume Apple to want a 30% margin on each unit, after all costs are taken into account.
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