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How much do you think mobile phones cost to manufacture? Do you think the markup price is fair?

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Question ajoutée par Lana Oudeh , PR Coordinator , Al Ghanem
Date de publication: 2017/01/16
Samer Nassereddine
par Samer Nassereddine , Managing Owner , SpeCS

The profit margin ranges between 60% to 70%, i.e a mobile phone costing $400 would have a retail price of $1000. I think the mark up price is somehow fair and that for marketing and R&D

Takieddine Kheloufi
par Takieddine Kheloufi , PROJECT MANAGER , BELRON

it costs +-20% of the sale price. The price goes up because of the marketing. The market is saturated and they need new consumers .

Abdurrahman Abdullkaream Abdullah  Zakaria
par Abdurrahman Abdullkaream Abdullah Zakaria , مسؤول مكتب خارجي , الشركة اليمنية للصناعة والتجارة والشركة اليمنية لصناعة السمن والصابون

The production cost is based on a teardown of the device, analysis of specs and information from suppliers. The most costly parts are often the core electronics, display, memory, and camera.

Let’s check out the production cost of Apple iPhone 7 Plus (32GB):

  • Production Cost      $277.66
  • Retail Price              $769
  • Profit margin            63.9%

Notice that I didn't take into account other costs like marketing, research, and development, distribution, staff or packaging, so the manufacturers wouldn’t earn that much profit from their products.

pradeep  kumar
par pradeep kumar , SAP SD Consultant , Tata Hitachi

25% cost to the manufacturers and selling at 100% including Tax, Wages, Transportation exp 

Mohammad Rejaulkarim
par Mohammad Rejaulkarim , Senior Merchandiser , FOUR DESIGN (PVT) LTD

DEPAND ON THE WORK CAPACITY AND SITUATION.

Branko  Dimitrijevic
par Branko Dimitrijevic , Sales Assistant , MSC Cruises

Manufacturing costs much less than the sale price, but marketing, warranty and conditions, service centers, support, all of those things can increse price more or less.

Janice Nisnisan
par Janice Nisnisan , ADMINISTRATION , PHOENIX GROUP OF COMPANIES

I think it cost 20-25% of the sale price. Mark up is necessary for the endorsement of the product in the market.

jamiu salami
par jamiu salami , QUANTITY SURVEYOR , O' SPACES LIMITED NIGERIA LIMITED

I think mobile phones csot 60% to their manufacturer. The markup price is fair considering their overheads.

suresh rajkumar
par suresh rajkumar , Cluster Cost Controller , Wyndham Marina & TRYP by Wyndham

Yes markup is important to set up for menu pricing 

marvin santos
par marvin santos , Project Control Engineer , Stream Industrial and Engineering WLL

manufacturing will be around 65% of the price and 35% markup.

Kashif Majeed
par Kashif Majeed , Procurement Officer , Descon Engineering

Manufacture cost to be 40%

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