BOM & Manufacturing Costs of Expensive Tech Gadgets


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Did you know that high-priced gadgets that you buy do have far low price of manufacturing? The BOM and manufacturing cost are way too less than the retail price. Tech companies such as Apple do sell their gadgets at high prices though the BOM and manufacturing cost is quite less because, the company is known for innovation and it comes first to the market before anyone else. Any such company wants to cover a large market with high profit. This article has a compilation of 8 most expensive gadgets that we or our friends bought whose BOM and manufacturing cost are quite low.

Here is a table showing BOM & manufacturing cost of tech gadgets that are sold at high price to the consumers.

GadgetsBOM + Manufacturing PriceRetail Price
iPhone 6$227$849
iPhone 6 Plus$242$949
iPad Air$274 to $358$499 to $929
iPod Nano (6th Gen)$45.10$149
Samsung Galaxy S6 Edge$290$799
Apple Watch Sport$84 (Rumored)$349
MacBook Air$718$999
Google Glass$80$1500
Beats Headphone$18$200

The values shown in the above table may or may not be accurate as it is a prediction by calculating the price of materials by some experts. The company may even manufacture such products at a less price.

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Here is a detailed analysis of manufacturing cost of 3 popular iPhone variants.

bom & manufacturing costs of expensive tech gadgets

Apple Watch Sport was rumored to be manufactured at $84 but still some experts believe that the Watch Sport may cost a little more than the rumored price to manufacture.

One may always wonder about the depreciation of price after some period of time. For example, we say around 50% price drop in iPhone 5S. For people who bought at full price might have even thought as a mistake to buy an iPhone 5S. This scenario is seen in other popular brands too. As people are more craze about Apple, we are much in eager to know about the production cost of Apple products.

The manufacturing cost and BOM do not include transportation charges and other charges that incur.

Every tech gadgets are sold at a very high profit. Specifically, the companies that come up with innovation sell their gadgets at a very high price. So is it clever to buy such gadgets after some time when the price fall? Remember, technology is growing fast and if you wait for the price drop, you are going to use an outdated product.

What is your thought about such companies who sell products at high profit? Share your thoughts in the comments below.

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