This is why most carmakers are moving towards touchscreens now as well.
If you want to keep prices roughly comparable to previous SKUs in the midst of trade and supply chain kerfuffles, there has to be cost cutting somewhere.
This is why most carmakers are moving towards touchscreens now as well.
If you want to keep prices roughly comparable to previous SKUs in the midst of trade and supply chain kerfuffles, there has to be cost cutting somewhere.
if 3nm chip manufacturing receives so much interest -- why not a fraction of that investment in engineering more durable, lasting, and cheap physical components too.
years later Apple might be the company doing "radical innovation", being "uncompromising when it comes to UX" and add a physical button and charge a premium for it
These are not pennies at scale. These are 9-10 figure costs at scale.
Just using the iPhone 15 Max as an example [0], your BoM is around $550-650 (including labor), but sells for $1,200.
50% margins are not great, especially because the the BoM grew from $400-500 for the iPhone 14 Max (Edit: "The parts costs for the Max series ranged between $400 and $450 during the 2018 to 2021 period", not iPhone 14), which also sold for $1,200.
A 50% decrease in margins on the flagship phone is a massive decrease in margins, and it's most likely similar across all Apple SKUs.
Every single component if you're in the hardware space costs money and overhead to manage, and supply chain issues can push back releases.
This is why companies are moving towards digital displays. It's the same principle why EVs can be more reliable than ICE vehicles due to less parts
As an (I presume) Engineer drill the following mantra into your head: MARGINS, MARGINS, MARGINS.
This is what gives you your paycheck in the environment we are in today.
> if 3nm chip manufacturing receives so much interest -- why not a fraction of that investment in engineering more durable, lasting, and cheap physical components too.
3nm chip manufacturing is expensive and costs money. That money needs to come from somewhere. Turns out, a portion of that budget came from the budget for buttons.
[0] - https://asia.nikkei.com/Business/Technology/iPhone-15-teardo...
Your claim is contradicted by the article you linked.
> The parts costs for the Max series ranged between $400 and $450 during the 2018 to 2021 period
> The estimated production cost of the model, calculated by adding up the cots of all parts used, stood at $558
Good catch though, I confused the iPhone 14 release date with 2021.
Editing.
Other poster is correct, it's a big deal, and it's why screens have replaced buttons in cars. It's so much cheaper to make a screen. Which is funny because as an EE, I judge a new vehicle first by how many buttons they still have.
Because you can't use them without taking your eyes off the road.
Depends on the country and margins.
For example, Chinese, Indian, and Vietnamese car manufacturers increasingly use touchscreens to minimize the amount of SKUs to manage and because touchscreen display manufacturing is commoditized in developing Asia.
The EU is pushing for regulation and limitations around touchscreen displays last month, but it was also around the same time the EU also announced anti-competitive action against Chinese automakers.
The US is a mixed bag around touchscreens. Some Chinese makes like a Volvo XC30 or a Polestar will be almost entirely touchscreen driven, and Tesla is also touchscreen driven for cost reasons, but other companies like your GMs or your Stellarises still have buttons, but are increasingly trying to move away.
Pretty much blows away the "Volvo is safer" marketing message.
Apple has been building the same home button for a decade. It's a simple, familiar interface. iPads cost hundreds of dollars. Engineering the cost of a button out of it at this point is pure greed.
These are not pennies at scale. These are 9-10 figure costs at scale.
Just using the iPhone 15 Max as an example [0], your BoM is around $550-650 (including labor), but sells for $1,200.
50% margins are not great, especially because the the BoM grew from $400-500 for the iPhone 14 Max (Edit: "The parts costs for the Max series ranged between $400 and $450 during the 2018 to 2021 period", not iPhone 14), which also sold for $1,200.
A 50% decrease in margins on the flagship phone is a massive decrease in margins, and it's most likely similar across all Apple SKUs.
Every single component if you're in the hardware space costs money and overhead to manage, and supply chain issues can push back releases.
This is why companies are moving towards digital displays. It's the same principle why EVs can be more reliable than ICE vehicles due to less parts
As an (I presume) Engineer drill the following mantra into your head: MARGINS, MARGINS, MARGINS.
This is what gives you your paycheck in the environment we are in today.
[0] - https://asia.nikkei.com/Business/Technology/iPhone-15-teardo...
Supply Chain is hard enough in a globalized world, and it's only gotten even harder now that a multi-year pandemic shutdown, trade wars, and tariffs are coming to play.