Guts of BlackBerry Bold found to cost $170

Not that it really matters to consumers one way or another -- after all, if you want a Bold, you'll pay the asking price -- but recent analysis by research firm iSuppli has found that parts and materials used to make the device "cost $158.16, and that assembly and testing add another $11.25, for a total cost of $169.41." Just for comparison, the Curve costs a cool $103 to build, and assuming RIM can sell the Bold to carriers at around $350, it'll net a gross margin of around 45% before R&D costs, software, marketing, shipping and freebies given to obscenely wealthy celebs are taken into account. The report (er, the part about the nice margins) should come as welcome news to shareholders, who have recently been worried that the current economic situation may keep individuals from snatching up new 'Berrys at a breakneck pace. Now, if only RIM / AT&T would let the thing get through testing, we'd be all set to contribute to those margins here in the US. Ahem.

[Michael @ Oct 16th 2008 11:13PM]

the next bold topic i read should say bold release....with a price.....until then..i dont care about all the extra crap surrounding it..just care about having it......

[dreamwalker @ Oct 16th 2008 11:19PM]

And the iPhone? Ten bucks? Kidding. Kidding.

[Mike @ Oct 16th 2008 11:20PM]

R&D costs, software development, and marketing, are HUGE costs aren't they?
Wouldn't RIM have a huge QA division as well (not sure if that's grouped in R&D).

[digitallysick @ Oct 16th 2008 11:24PM]

Its to late for the bold they should just cancel it, revamp the specs and re release it.

[Bco @ Oct 16th 2008 11:39PM]

Wha? What the hell else do you want in the Bold??

[Tony @ Oct 17th 2008 12:09AM]

Oh yeah, I'm sure that would make their stock sky rocket.
Not to mention making the employees who worked hard on the Bold jump with glee.
And no fans would be disappointed at all right?

Do you think before you post?

[Connor @ Oct 16th 2008 11:33PM]

Guts of the phone...were gettin' there...
Now, wanna release an actual price?
Please?

[Andrew @ Oct 16th 2008 11:39PM]

It's out in Canada but it has a lot of problems. It's a lemon.

[ptrcd003 @ Oct 17th 2008 1:08AM]

tell me about it. Crappy GPS that rarely, if ever, works (triangulation never works unless you download google maps) . Constant spinning clock, sometimes preventing me from answering calls for up to 5 minutes. Totally unstable OS (have missed class due to alarm clock app crashing during the night). The browser is also relatively slow, and the build quality should be much higher for a phone of this price (sides creak, back cover moves around.) This isn't a single occurence, my friend has the same phone with the same problems. So be glad it isn't out in the States yet, maybe they're actually planning to fix these things. If it wasn't for the amazing email capabilities, i'd go back to the iPhone 3G in a heartbeat

[Mike P. @ Oct 17th 2008 1:37AM]

My Bold's been perfectly fine, barring the fact that the plastic lens over the LCD is too soft.

But then again, I only got my Bold a week ago... =D

[wako @ Oct 16th 2008 11:49PM]

when will they show some love for Tmobile USA? :(

[7on @ Oct 17th 2008 8:40AM]

I think they might be taking longer because of T-mo's different banded 3G

Also you know it'll need UMA and a MyFavs App, those things take a couple extra months after the initial product is out the door.

[yonan32 @ Oct 16th 2008 11:53PM]

the Bold has been out here in Indonesia for a while, through all 3 major GSM carriers. but since carriers do not subsidize handsets here, people have to cough up full price for the handset, which is selling at around USD900 here. yes. and they're still selling like hotcakes.

[*brotha @ Oct 16th 2008 11:59PM]

what problems?

ive tested this phone out and its great... i just wish i could afford it.
It has basically every single thing i could ever want... except maybe a touch screen, but in many ways its good without this. No need for dirty screen and accidental screen presses.

its design is perfect with no touch.

[soloman02 @ Oct 17th 2008 12:13AM]

Screw the Bold. I want a Storm on the AT&T network!

[HalfJoey @ Oct 17th 2008 12:29AM]

And I want the Bold on Verizon! Maybe they can trade?

[ENVi @ Oct 17th 2008 12:23AM]

where can i get that wallpaper on the phone?

[Evangelion @ Oct 17th 2008 12:49AM]

http://www.google.com

[rand @ Oct 17th 2008 12:46AM]

Wow another "Heads up their ass" cost estimate from the clowns at iSuppli. Guys who have never made ANYTHING in their lives. Sorry...I spent years in product development. These clowns maybe get clost on COGs but miss the target on everything else.

[Luke @ Oct 17th 2008 1:14AM]

This costing is too simplistic. When RIM sells one of these phones they are trying to recoup:

1. The cost of the components ($170, thanks iSuppli)
2. The salaries of all their staff.
3. The rent on all their buildings.
4. The cost of flying people around the world sourcing these components.
5. As above for negotiating prices, working deals for bulk orders, sweeteners to protect supply chain.
6. Advertising and general marketing costs.
7. The cost of the box and packaging.
8. The cost of shipping the goods from the factory to the shops.
9. The cost of the intellectual property and patent royalties for various tech in the device.
10. The cost of designing the software that runs on the device and the servers, and maintaining data centres.
11. The cost of supporting customers, handling helpdesk calls.
12. The cost of faulty units being returned/replaced/repared.
13. The cost of having their website developed.
14. The cost of negotiating with carriers.
15. Taxes on imports, staff and finally profit on their range of products.

Did I miss anything?

Luke

[rand @ Oct 17th 2008 9:55AM]

You left off:

1.) The cost of molds for the phones "chassis"
2.) The cost of test fixtures. (In circuit test and functional verification systems) for the product. iSuppli's figure is too low to include the multiple fixtures that would be needed for mass production.
3.) The "other" general operating expenses not included in your very good list. Like utilities for the lights in their buildings.

[david amodt @ Oct 17th 2008 2:16AM]

costs of $170 and selling on ebay now for $800. Priceless

[jollyllama @ Oct 17th 2008 2:34AM]

"net a gross margin of around 45% before R&D costs, software, marketing, shipping..."

What the hell does that even mean? Even as a random fact to hear, a "net gross margin" that doesn't include these things is pointless.

[ilh @ Oct 17th 2008 3:53AM]

Perhaps missing out the "a" in between "It'll net" and "gross margin" has confused you. A gross margin doesn't include those things. A net margin does.

[jollyllama @ Oct 17th 2008 5:47AM]

ilh, you're right, I did miss that "a" between those two terms. Still, you wouldn't "net" a margin (a weird use of the verb "net", to be sure) until you subtract operating costs, so I'd argue at this point that the writer's use of this phrase is at best awkward, and a bit misleading.

[Konstantin @ Oct 17th 2008 3:24AM]

Looks like they'll make some money.

[JeePee @ Oct 17th 2008 4:12AM]

Dude! What about Levi Jeans.. Levis buys them from 4 dollar from the factory and sells them for 50 euro !! about 70 bucks!

[sithlord 24 @ Oct 17th 2008 9:43AM]

it cost about what 10 cents to make a cd and we pay 12.00 in the stores for them... 10.00 off itunes/amazon ect and it cost nothing for that bc its a digital download.....

[happy_penguin @ Oct 17th 2008 1:54PM]

So buy a blank CD. You forget that the content has value.