{"id":44035,"date":"2012-02-23T09:37:29","date_gmt":"2012-02-23T07:37:29","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=44035"},"modified":"2012-02-23T09:38:39","modified_gmt":"2012-02-23T07:38:39","slug":"iphone-manufacturing-costs-exposed","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/technology\/44035-iphone-manufacturing-costs-exposed.html","title":{"rendered":"iPhone manufacturing costs exposed?"},"content":{"rendered":"<p>Insight into the manufacturing process at <a title=\"Foxconn Technology\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/369768-Foxconn\">Foxconn<\/a> factories have allowed Horace Dediu to estimate the manufacture cost of an <a title=\"Apple\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/342717-Apple-inc\">Apple<\/a> iPhone smartphone.<\/p>\n<p>Dediu, an analyst and former business development manager at Nokia, based his calculations on information gathered from the \u201cNightline\u201d show on ABC.<\/p>\n<p><a title=\"ABC News\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/370082-ABC-News\">ABC<\/a> reported that each iPhone takes 24 hours to build, including 6 to 8 hours of software testing and component \u201cburn-in\u201d.<\/p>\n<div>\n<p>The show also reported that the workers on the production line make $1.78 (R13.76) per hour.<\/p>\n<p>After processing the information, Dediu found the following:<\/p>\n<ul>\n<li>Labour costs to make an iPhone unit are between $12.5 (R96.66) and $30 (R231.98) per unit.<\/li>\n<li>Labour costs only account for between 2 and 5 percent of the overall cost structure.<\/li>\n<li>The manufacturing process could be automated, however the costs of implementing automation would be high, and there would be less flexibility in the automation process.<\/li>\n<\/ul>\n<p>Previous estimates have pegged the iPhone manufacturing cost at $8 (R61.86) per unit.<\/p>\n<\/div>\n<p>Analysts also note that transportation and warranty expenses cost nearly twice as much as the upper end ($30) manufacturing estimate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>iPhone manufacture costs are higher than initially expected, but still staggeringly low according to one analyst<\/p>\n","protected":false},"author":56,"featured_media":35258,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[5308,605,2078,9079],"class_list":["post-44035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-abc","tag-apple","tag-foxconn","tag-horace-dediu"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/44035"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=44035"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/44035\/revisions"}],"predecessor-version":[{"id":44037,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/44035\/revisions\/44037"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/35258"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=44035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=44035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=44035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}