Samsung's Galaxy S8 with the same 64GB of NAND memory carries a BOM of $302 and full retail price is $720. At $720, the $302 BOM is 42% of the phone's cost. I bought my S8 a few months ago at Costco (COST) for $600 and got a $50 gift card this month which lowered the final cost to $550.
Click images to see full size
|Apple price graph showing open gaps|
With a 5% to 18% higher profit margin due to its lower BOM as a percentage of retail price, Apple is clearly positioning its phone as a "status symbol" to take advantage of its popularity while it can.
Kirk Lindstrom's Investment Letter
Subscribe NOW and get the November 2017 Issue for FREE!!!
(My SPECIAL ALERT emails will begin immediately plus access to all past issues while your 1 year, 12 issue subscription will start with the December issue.)
Post a Comment