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Thread: How much are phones really worth?

  1. #1
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    How much are phones really worth?

    What up people, my first post!

    Always wondered this, what is the actual worth of a mobile phone considering how much technology is in it? If a fairly decent home portable phone can cost over $200 and it doesn't have half the features of even a basic mobile, how much would mobile's cost if providers didn't subsidize part of the real cost of the phone? Curious.

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    well phones cost a lot for many reasons, parts and labor are one of the factors, but then you also must pay back the R&D costs that were put into the phone and the marketing campaign, and of course you ought to make a small profit out of the whole deal
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  3. #3
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    I don't think that the cell phone manufacturers lose that much on the pure purchase of phones. Now, they will when the phone is selling for free, but when its normal price they shouldn't. The reason I say this is that most cell phones carry about a 20-30% margin, meaning that is the amount of profit cell phone retailers make when they sell them. On other low margin things (xbox's, ps2's, etc) the stores will sell them for the price they pay for them in hopes that you buy along with the low margin item the high margin pieces such as controllers, mem cards, etc.

    If any of you have ever checked out the fcc's webpage and look at the innards of your phone you can see that it is relatively simple. Up until now I believe that nokia and texas instruments made the majority of the chips for cell phones. Recently Intel announced they were going into the industry also. Well, Intel is huge so they should be able to produce better, more, and cheaper so we should see the trend of cheaper phones six months to a year from now.

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