The end-user of the commodity will never realize how much it costs in making that respective commodity. There are multiple telephones which need more money to purchase them. The higher the price simply means the cost of manufacturing was also high. There are different materials that are put together by an expert in that field hence coming up with useful items that help in solving a problem in society. The world calls upon innovations and inventions of smart items that will exchange the living conditions of people.
This decade has been dominated by Apple, which deals in the production of smart communication gadgets. Such items involve iPods, iPhones, MacBook laptops, and other software which are intangible. The company is making dollars through the selling of these commodities since they are in great demand across the world. Apple has set up minor companies in developed countries like China and the USA. The manufacture of those phones or laptops requires different knowledge together with resources.
Mobile phones are known to upgrade with a new feature whenever they come into markets fresh. This is a result of drawing insights from members who demand the addition of certain software that performs special tasks. Ladies are fans of good cameras, and that has led Apple managers to advise their developers on the working of high pixel cameras which increases the telephone market as the demand rises within a short period of time. The main aim of serving customers with high-quality phones and in return make a lump sum profit mark.
Screen sizes will always be among the price determiners for any telephone made. Large and quality screens will demand higher resources in development which is almost $66 according to US Apple. Sensor holding requires keen fixation to avoid future problems or when a gadget falls on the ground. A hard screen with good model sensors will increase the cost of manufacturing by almost 2% of original glasses. Memory size is the core of the running programs and storage of files. Storage is essential to human beings involved in carrying large files for a long period of time.
A Processor and internal modem that enhances network interaction can cost approximately $181. The battery module should be long-lost for it to attract more customers. Batteries are produced in another department, their conditions must be improved before the sale.
Software is the core foundation for mobile to run accurately on hardware. iPhone’s applications function differently from the famous android software’s. Although they look and perform similar functions, they are written in different languages. Getting a qualified candidate to write good code that will ease certain work by the user is another task. The labor cost more money as US statistics confirmed that any Apple workers are paid $7.5 per hour. Coming up with new software applications will always call customers to want to explore them more.
Business analysts might be seen to earn a large salary for free, but in a real sense, those professionals get pressure in their job. They are involved in doing research in the market, identifying trends, and conducting direct interviews with customers to get their feedback on the working of an iPhone. These analysts act as middlemen between engineers and the final users of respective telephones. They also have the capabilities to look at what their competitors are building to get traffic from clients. Then, information is communicated to developers and engineers who implement instructions on the products. Research and development results in an added cost on the final commodity.
There is a problem with deciding the price to sell an iPhone after undergoing all the above processes. The company wants to make a profit on a similar note it has to make sure it does not exploit its customers. This stage brings many questions as selling managers are confused about how they have to grade the new product. Shipping costs are determined by how far the journey may take companies from manufacturing points to real retailers in companies.
The total in coming up with an iPhone depends on the number of added software and hardware to improve it. A mobile with unique features like waterproofing will always result in the use of expensive resources and therefore expected price rises. Despite this idea, people will opt for expensive items because they are legit to use. The prices shall continue to increase as time goes by because a better gadget is yet to emerge.