Cost breakdown of the first Fairphone

Cost Breakdown of the First Fairphone Consumer price €325 - € 56.50 - € 6.75 - € 4.25 Average Value Added Tax Levies/tax (private copying, WEEE) Resellers' margin At Fairphone, we want to start a movement to change the way products are made. But just as importantly, we want to make a change through the way we do business. That means being open and transparent about what we do and where we expect our money (and yours) will go. So, here's what happens to the €325 for every Fairphone sold. Average Sales Price € 257.50 Product € 185 € 129.75 Design, engineering, components, manufacturing and assembly costs Certifications (eg. CE, GCF, ROHS, FCC, REACH) and testing € 9 Interventions € 22 € 1 Packaging and (repair) manuals Fairphone puts social values first in our decision-making process, which affects the entire production of this phone. We also actively seek ways to drive sustainable change in the supply chain and life cycle of our smartphone. We call these our "interventions". Our interventions follow the action areas of our long-term road map to a fairer economy, from sourcing conflict-free minerals from DR Congo to facilitating better e-waste solutions. € 2 Inbound logistics € 25 Royalties to patent holders, IP licenses €18.25 Estimated warranty costs (including spare parts, labor and transport) Operations € 45 € 4.75 Project development, prototyping PRECIOUS MATERIALS € 17.75 Personnel costs, office space, IT, travel € 3.75 Stakeholder meetings, participation Conflict-Free Tin Initiative (CFTI) and Solutions for Hope, and monitoring initiatives for responsible sourcing € 11.25 Legal, accounting, other outside service providers Events, communications and public engagement € 5.25 Webshop hosting, payment facilities, customer support MADE WITH CARE € 7.50 Made with Care Program € 1.93 Worker welfare fund ($2.50) Initial Operating Result € 5 = €1 SMART DESIGN € 5 € 4 Reserve (for unexpected stuff), investments and financing costs Open source development, community support, Fairphone operating system Each cube represents one euro of Fairphone's consumer price and is based on the production of 25,000 phones. Figures are for 2013 and have been rounded for ease of reading. Visit fairphone.com/2013/09/12/costbreakdown LASTING VALUE € 3 Initiatives to recycle existing e-waste Coordination for Fairphone e-waste where you can download a Key for a detailed FAIRPHONE explanation. .com