NEW DELHI: Apple’s Homepod has gathered enough headlines in the past few months due to several reasons, be its delayed arrival or incompatibility with Android over Bluetooth connectivity. The speaker continues to stay in the news. This time it is for its manufacturing cost. A report by Bloomberg, citing analysis by IHS Markit and TechInsights, reveals the manufacturing cost of the Siri-based speaker and the small margin Apple is operating at.
According to the report, Apple Homepod, which has $349 (roughly Rs 22,303) price tag in the US, takes $216 (roughly Rs 13,800) to build. This means a margin of $133 (roughly Rs 8,499) or 38%, which is smaller than the margin Apple operates at with the iPhone and Watch.
The margin percentage is even smaller than that of Google’s Home and Amazon’s Echo. The former has a margin of 66%, while the later operates at 56%.
As for how much the components inside the Apple Homepod cost, the woofers, tweeter and microphones reportedly cost $58 (roughly Rs 3,700) combined. The lightning system that shows the Siri animation adds $60 to the price. The A8 chipset powering the speaker costs $25.50 while the housing and other items are together priced at $25. The “manufacturing, testing and packaging” are together said to add $17.50 to the manufacturing price.
According to TechInsight’s executive, Apple may be planning to cover up the small margin by selling the speakers in volume.
For those unaware, Apple sells its flagship smartphone, iPhone X at 64% margin. The iPhone 8 on the other hand is being operated at 59% margin.
Recently it was revealed that to fix a Homepod, users will have to shed $279. This is just $70 less than the cost of the speaker itself. But if you already have AppleCare+, getting the speaker fixed won’t cost you a thing, at least for two years from its original purchase date.
According to the report, Apple Homepod, which has $349 (roughly Rs 22,303) price tag in the US, takes $216 (roughly Rs 13,800) to build. This means a margin of $133 (roughly Rs 8,499) or 38%, which is smaller than the margin Apple operates at with the iPhone and Watch.
The margin percentage is even smaller than that of Google’s Home and Amazon’s Echo. The former has a margin of 66%, while the later operates at 56%.
As for how much the components inside the Apple Homepod cost, the woofers, tweeter and microphones reportedly cost $58 (roughly Rs 3,700) combined. The lightning system that shows the Siri animation adds $60 to the price. The A8 chipset powering the speaker costs $25.50 while the housing and other items are together priced at $25. The “manufacturing, testing and packaging” are together said to add $17.50 to the manufacturing price.
According to TechInsight’s executive, Apple may be planning to cover up the small margin by selling the speakers in volume.
For those unaware, Apple sells its flagship smartphone, iPhone X at 64% margin. The iPhone 8 on the other hand is being operated at 59% margin.
Recently it was revealed that to fix a Homepod, users will have to shed $279. This is just $70 less than the cost of the speaker itself. But if you already have AppleCare+, getting the speaker fixed won’t cost you a thing, at least for two years from its original purchase date.
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