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@hugh @sun so the cost to produce a modern iPhone goes all the way back to the original Mach/XNU kernel in MacOS 10 that they acquired from NeXT in 1997 so "the cost to produce each iPhone 17" is going to look astronomical if you actually went back to every single thing they did over the years that was included in or influenced the final product
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@SlicerDicer @hugh @feld where did the 240 mil go???
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@feld @hugh @sun >> 240 million in VC funding, 10k units produced
So after tax deductions, payroll and all the R&D.
They lost the money as they did not produce units at scale. That’s not that it cost that much to make.
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@sun @hugh @feld Away.
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@SlicerDicer @feld @hugh the reason I ask is because their software was minimal and crap, and their hardware was not better than literal individuals do on crowdsupply dot com. 240 million is a lot. it must have gone somewhere
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@SlicerDicer @hugh @sun ok good I thought I was going crazy, but now I have confirmation from someone who is skilled at studying company financials and performance for investment purposes that this is not how you properly report the cost to produce something
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@SlicerDicer @hugh @feld I'm not I'm just asking where the money went
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@sun @feld @hugh It went away, investment comes with risk of 100% loss.
You can’t attribute the cost of the product to the investment. That’s just lunacy if you did that. Think how much everything would cost to do the first 6000-10000 units. No one would ever invest in that. The investment is proportional to the perceived market capitalization attainable.
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@sun @hugh @feld Failed execution of planning and costs, likely attempts at marketing and all that. Just because it’s got money does not mean they won’t produce a terrible result.
This is really tale as old as time. Ratio of failed to success is nuts. 90% end up failing.
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@hugh @sun so circling back, Apple's spent over $200B just in R&D since 1997. Hard to find numbers right now, but let's say the iPhone 16 has produced and sold 75 million units to date.
Does that mean we do $200B / 75 million to get the "cost to produce"? $2666 ? Of course not LOL
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@feld @hugh @sun i interviewed at humane about 4 months ago, made it through round 4 but did not get an offer, lucked out!?!