The big secret of cost composition: the contest between Apple and Samsung!

The cost composition of a product can be very complicated, including manufacturing cost, research and development cost, patent licensing cost, circulation cost, labor cost, post-maintenance cost and so on. Gross profit is the difference between the selling price and these costs, and of course the brand value! This paper will discuss the cost structure of high-end models of Apple and Samsung in depth to help readers better understand the contest between the two brands.

High research and development costs

Apple's research and development costs are quite high, especially the development and update of the iOS operating system. This is also an important guarantee for Apple to continuously introduce new products and functions.

The human salary cost that can't be ignored.

Apple's labor wage cost is also an expense that cannot be ignored. But this is also an important guarantee for Apple to have high-quality employees and provide quality services.

Importance of brand value

Apple has won the favor of countless consumers with its advanced design concept, advanced innovation consciousness, excellent quality control and high-quality warranty policy. This is also an important guarantee for Apple to set a high price and get the highest profit.

Behind the high cost

Apple's high costs are not only R&D and labor costs, but also manufacturing costs, patent licensing costs, circulation costs and post-maintenance costs. However, Apple's excellent quality, fashion guidance and unique innovative ideas are all the reasons why Apple dares to set high prices and get the highest profits.