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Comment by nomel

4 hours ago

What percent of the iPhone sales do you think it took to pay off the significant engineering and factory/tooling setup costs? I bet it's more than 3%.

Apple made nearly $190 billion last year selling just iPhones.

If you think it costs more than $5 billion to design a phone and set up a production line, you are wildly off base. That’s the kind of money companies spend to build silicon fabs or release half a dozen new car models, not consumer products made by a contract manufacturer.

How much of those costs are already sunk regardless of the split in your product line?