Apple Pay used by estimated 127M users globally, but analyst claims only 16 percent of iPhones used for payments

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Apple Pay is continuing to grow year-on-year, according to research by Loup Ventures, but while the adoption rate for Apple Pay by its users has reportedly jumped, it is claimed the mobile payments service is still being used by a relatively small proportion of iPhone users.
AppleInsider – Frontpage News

HomePod costs an estimated $216 to build

Apple’s Siri-driven HomePod wireless speaker retails for $ 349, but the components that go into it cost an estimated $ 216, suggesting Apple is making 38% margin on its latest product…. Read the rest of this post here


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iDownloadBlog.com

HomePod Costs an Estimated $216 to Make

It costs Apple an estimated $216 in raw components to build the HomePod, which sells for $349, according to research conducted by TechInsights and shared by Bloomberg.

Internal components like the microphones, tweeter, woofer, and power management chips cost Apple an estimated $58, while smaller components like the lighting system used for Siri and other animations cost $60. The A8 chip, which powers the speaker’s spatial awareness, Siri features, sound adjustments, and other smart features, costs an estimated $25.


TechInsights believes the external housing and other exterior components add up to $25, while manufacturing, testing, and packaging cost an additional $17.50.

At $216 for parts and a $349 selling point, the HomePod brings in less money for each device sold than other Apple products like the iPhone. The $999 iPhone X, for example, uses components estimated to cost $357.50, and the entry-level iPhone 8 costs Apple an estimated $247.51 to make but sells for $699.

HomePod also has a smaller profit margin than competing speaker products from other companies. TechInsights says that while the HomePod has a profit margin of 38 percent based on component costs, the Google Home and Amazon Echo have margins of 66 and 56 percent, respectively. Both of those speakers use less expensive components and were not created with sound quality as the primary focus.

“Apple is compressing their margins a bit, wanting to go big or go home,” said Al Cowsky, TechInsight’s costing manager. “In doing so, I suspect they reduced the selling price from a normal Apple margin in order to sell more units on volume.”

Component costs reports from companies like TechInsights do not take into account expenses like research and development, software creation, and other related costs, and can’t be counted as an accurate look at Apple’s profit margin for any given product.

Back in 2015, Apple CEO Tim Cook said cost estimates are often “much different from reality.” “I’ve never seen one that is anywhere close to being accurate,” he said.

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KGI: Apple estimated to sell 100 million units of new 6.1-inch iPhone, priced as iPhone 8 replacement

KGI continues to double-down on its claims on what the 2018 iPhone lineup will comprise. The 6.1-inch LCD iPhone will apparently resemble the iPhone X with a similar full-screen design but at a more accessible price for customers; the analyst expects this new iPhone to be priced to replace iPhone 8 and iPhone 8 Plus, as cheap as $ 699.

The LCD 6.1-inch iPhone will use slightly less premium components, such as an aluminium frame instead of stainless steel. Nevertheless, given that it looks like a top-end iPhone in style, KGI believes the lower entry point will make it Apple’s most popular 2018 device and see total sales around 100 million units.

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9to5Mac

Android-powered Essential Phone estimated to have shipped just 88K units in 2017

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Despite being one of the first handsets on the market with an edge-to-edge display, the Essential Phone, pioneered by former Android chief Andy Rubin, failed to compete with the likes of Apple’s iPhone X in any meaningful way, with one new estimate suggesting just 88,000 units were shipped last year.
AppleInsider – Frontpage News