$259.60: Cost of Components to an iPad 16GB

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[citation][nom]mianmian[/nom]Let's do a comparison,Intel 2009 Q4, gross margin percentage is 65%, which means only 35% of the sale price is production cost.[/citation]
With Intel however much of that money goes into making the next processor.
I'd rather see my money invested, even if I get no direct returns.

My question though, why not a OLED, or even a fancy smancy Samsung Super AMOLED running 1920x1080? I'd pay $100 more for that.
 
[citation][nom]von death[/nom]Companies make money off other people's lack on knowledge in that area.I build computers, so I know that most companies which sell pre-built systems are either raising component parts pricing, or selling people stuff they don't need. Apple is the largest and largest offender of these two practices.It's like if you get your car fixed, and the mechanic lays you a huge list of fees for things he fixed; you don't really know if your car needed them or not because in essence you're not a mechanic.[/citation]
Except mechanics can rape people a lot harder than consumer level techs, generally.
There's laws to prevent them from doing it, but they aren't enforced anywhere I've been...

I wish I had sunk all my money into Macintosh stocks a month ago now.
 
Those prices I am sure are based on large quantity shipments. Go ahead and try and purchase those parts by themselves, then put it all together (solder). Also, Apple is allowed to charge for the OS as well. @Von Death: Everyone makes money off of people lack of knowledge!

All this CRAP about how Apple and every other company is trying to screw you over is ridiculous. People can charge whatever they want! You can't afford it??? TOUGH COOKIES!
 
Did anyone know which one is better? S-IPS screen or Super AMOLED? Why hi end HP not using S-IPS but AMOLED or SAMOLED? And the opposite, why Samsung doesn't create a 15" - 103" SAMOLED LCD?
 
[citation][nom]otacon72[/nom]If you really think about Apple's business model it's so fundementally flawed. Jobs still thinks that Apple prducts are just better than everyone elses so they charge 30% more than what the product is actually worth. Yes I know the consumer dictates what something is worth but read on. That line might have worked back in the day but everyone knows it's just not the case anymore. If Apple took that 30% off their MSRP they would move 10x more inventory.[/citation]

But why? How do you know they would make more money by doing that? Making more for less is not always the best strategy. Apple is making money doing something right while most business's in the world are floundering right now. You shouldn't be questioning their business plan, you should be studying it.

Before some of you jump to overpriced conclusions, you have to understand the total cost of ownership to design, build, sell, and warranty a product. LOH is a big, big number that never gets mentioned in these idiotic articles.
 
Is this really surprising to everyone?? The hardware most of you buy for your PC's is probably marked up the same. Lets look at other products..cars, boats, clothing...you really think it costs 150 bux to make a pair of jeans? Its the same accross the board and as consumers its all based on supply and demand...you can't compare components vs final price..otherwise services you pay for would be free. You're missin R&D costs and time value of money here!!
 
[citation][nom]dannyaa[/nom]I just knew there'd be a bunch of young.... errr... what's the nice world.... less sharp.... people commenting on insane markups, capitalism, greed, etc.You do realize a company spends years working on a product and paying engineers and developers 6 figure salaries? Paying rent for their offices, retail stores? Paying salaries to staff retail store employees? Shipment fees? Marketing and advertising?Certainly they will make a profit... then again that's kind of the point, isn't it? Would you go to your job if you didn't make a profit?[/citation]

Sony sells their PS3 at a loss. Microsoft initially sold their 360 at a loss (this is probably blowing your mind). Companies can sell products at a loss and make money (still with me?). Sony and Microsoft sell their hardware at a loss, but make up for it in software sales. Apple makes a killing on the hardware side, then rips you off (or the publishers) on the software side. That is why the iPad is NOT reasonably priced (deal with it, its the truth)
 
[citation][nom]del35[/nom]Apple is a cruel monster in need of beheading.[/citation]

However this monster gets people jobs as well... so it's not as easy.
 
[citation][nom]maydaynomore[/nom]Sony sells their PS3 at a loss. Microsoft initially sold their 360 at a loss (this is probably blowing your mind). Companies can sell products at a loss and make money (still with me?). Sony and Microsoft sell their hardware at a loss, but make up for it in software sales. Apple makes a killing on the hardware side, then rips you off (or the publishers) on the software side. That is why the iPad is NOT reasonably priced (deal with it, its the truth)[/citation]
Didn't Tom's just add a feature to allow people to filter out Apple news if they're sick of hearing about the iPad?

Yet all the idiots and haters are still popping up in Apple discussions. As someone else already predicted, Tom's change to allow readers to skip Apple news won't change anything. Haters can't resist showing up in Apple discussions to post their trash, so why would that change now that Tom's has a filter to block it?

I propose Tom's does the opposite - a subscribe feature that e-mails you when more iPad news articles appear so the haters can respond even quicker.


Anyway, back on topic. Your comparison to the PS3 and XBOX is just plain stupid. Yes, Sony and MS sell their consoles at a slight loss and expect to make it up in game sales. However, the average console user will spend MANY, MANY times the amount of money on their games as an iPad/iPhone user would ever spend on apps. Plus you have Sony/MS competing against each other so you can't take their marketing tactics and compare them to Apple. If Apple had a direct competitor that was in a position to move as many tablets as the iPad then I bet you'd see a price war.

Apple rips you off for apps? I didn't know that $0.99 to $4.99 (common app price) was a rip off.

face the facts - all industries are in business to make money, and making money means you charge more for your products than what they cost. What a ridiculous concept.
 
Designed by Apple in California.
Produced by children in sweatshops in China, Korea, Taiwan...

FYI, 50% margin over the production cost is normal. Substract R&D, Marketing, distribution and the final retailer will usually make 7-10% profit. I was making 5% on the sale of a Mac product when I worked in a store. 3,5% if the customer was paying with a credit card (stores pay a % every time you use a credit card, in case you didn't know). It pretty much suck to sell Apple products. But, if you don't do it, the customer will just buy it elsewhere. A little profit is better than no profit at all.
 
[citation][nom]dimar[/nom]I was thinking of getting the basic model to read comics. But now that I've seen this, I won't be getting it until the price goes to at least $359.60[/citation]

By the time you would expect the price to drop Apple will release the updated iPad with a new feature or two which will "justify" maintaining their prices at current levels.
 
You forgot about the 'fairy dust' that Apple puts in each product. That alone is worth about $150-$200, which makes any Apple product worth having.
 
The rule of thumb is double the cost for MSRP. Seems about right. Don't forget like some have already said cost to make doesn't include RnD which is the biggest expense in the computer industry.
 
uhhhh....

how much would a video card cost if I could buy it at the same price one of ati/nvidia's partners buy it at?

I actually dislike apple, yell at friends for buying their products.

Is the ipad overpriced?

Yes, but..

A) Apple needs to get that chedda
B) This happens throughout all of the - dare I say it - world.

Buy cheap - sell high. If people buy it, why stop?
 
You sell your product for whatever the market will bear, making sure you make a profit. That is, after all, what Apple is in business for: to make a profit.

Do any of you ignorant dolts who chide Apple for making profits understand the concepts of capitalism and free markets? There is nothing unethical or illegal about what Apple is doing.

The flip side of a free market is that you can choose to not buy a product if you think the asking price is not worth it.

All of the complainers here need to stop your whining and go back to your jobs at the Starbucks drive-through windows, protesting global warming, working for MoveOn.org or whatever the heck you clueless wonders do all day.
 
[citation][nom]tayb[/nom]If this thing continues flying off the shelf I would actually raise the price until demand started tapering off.[/citation]
Apple has done this before. With the Mac Mini, they had a super low margin when it first came out, and they flew off the shelves. They were the cheapest computer that would run smoothly at the time, and it was portable... it was a piece of magic for $500 (2004). They had the price low, because they were going through rough times, and these was a new idea for them, but once they realized it could be sold for a lot more, they changed the hardware, mostly making it worst, and then upped the price by a hundred bucks. It has since lowered again, but that was 6 years ago!

Still they won't raise the price, they could have sold a lot more units if they had a lower price and they know it, but their margin may have not been as good, especially with all the flak for missing features.

A bunch of people keep making empty claims about how the cost is actually less, or is a lot more. The only one that is justified was the person who mentioned development costs, and paying for various parts of the company while the product is being developed. That stuff costs a lot of money.

No doubt, Apple has planned the price of the product to make money off it that will overcome the R & D cost in virtually no time, but that cost still needs to be considered.

My main point is, NO ONE KNOWS WHAT THEY ARE TALKING ABOUT RELATED TO EXACT COST! Including me.
 
learn to supply and demand lolol
does not matter how much it costs THEM to make it
thats like comparing a $5 walmart shirt and a $33 armani shirt, altho armani will obviously have much better quality, but you are paying more for the name then anything.
and how about softwares like windows 7? adobe CS5? how much does it cost them to print that extra CD and packaging, nearly nothing, so why still costs hundreds-thousands of dollars? why? because people are willing to buy them at the equalibrium price. so quit your complaining, if you really want to get the most out of your money, then go buy a knock-off chinese touch screen mp4, those no namers are merely $30 for 4gb
 
Wholesale China Electronics,Spy Cameras,MP5 Players,MP4 Players, Mobile Phones, Cell Phones, Car DVD Players, Digital Cameras, Security Products, Electronic Gadgets
 
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