Pratik Mhatre

Pratik Mhatre

Futility of Calculating the True Cost of Building a Phone

I’ve never understood the point of such analyses. First, you can never calculate the true cost of a device by just adding up the cost of its materials. You leave out the intangibles. Second, even if you stick to adding up the cost of the raw materials down to the second decimal, like they do in the linked article, you’re using the retail price that’s available to the layperson. Apple, I’m sure, gets a much different rate for all the materials. The article concludes with a Tim Cook saying, he has “never seen one that is anywhere close to being accurate.” But of course, that doesn’t stop publications like Bloomberg from investing time and effort into this meaningless excercise.