iPad Air Costs Less To Make Than Previous Model

H

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
The iPad Air costs less to make than previous models? Bring on the discounts...oh wait, this is Apple we are talking about...bring on the price hike! :D

When the US$6 manufacturing cost of the iPad Air is added in, the total cost to make the tablet increases to US$310. For the lowest-end iPad Air model with 16GB of NAND and no cellular connection, the BOM and manufacturing cost is US$274, US$42 less than the entry-level third-generation iPad.
Click to expand...
 
It's also better than the previous model in almost every conceivable way. Plus, BOM isn't a good indicator for what total cost is to bring devices to market. Plus, people will gladly pay the price.
 
The profitability of the iPad Air rises dramatically as the NAND memory capacity increases. For example, the 32GB model costs Apple only US$8.40 more to produce – but has a retail price that is US$100 higher.
Click to expand...

Typical gouging, although Apple is far from being the only company that pulls this sort of crap.

LeninGHOLA said:
It's also better than the previous model in almost every conceivable way. Plus, BOM isn't a good indicator for what total cost is to bring devices to market. Plus, people will gladly pay the price.
Click to expand...

Plus, fans of Apple products will gladly pay the price. <- FTFY
 
I was really disappointed 16GB is still the base model. I was really hoping they'd shift to 32GB at the same price-point. Even then it's still overpriced.
 
cortexodus said:
Typical gouging, although Apple is far from being the only company that pulls this sort of crap.



Plus, fans of Apple products will gladly pay the price. <- FTFY
Click to expand...

If people are willing to pay the price, why in the world would Apple reduce that price? Are you really whining about the price of a product you have no interest in and never intend on buying?
 
LeninGHOLA said:
If people are willing to pay the price, why in the world would Apple reduce that price? Are you really whining about the price of a product you have no interest in and never intend on buying?
Click to expand...

Way to leap on the defense of Apple pricing for an attack that didn't occur :rolleyes: Calm down there, buddy.

My statements are no different if you replace "Apple" with "Sony" ;)
 
cortexodus said:
Way to leap on the defense of Apple pricing for an attack that didn't occur :rolleyes: Calm down there, buddy.

My statements are no different if you replace "Apple" with "Sony" ;)
Click to expand...

Good job pointing out that people who like the products a company produces have no problem paying prices they seem to think are reasonable. Without that illustration, I'm sure everyone would be scratching their heads.
 
When will we see the same attention given to an article about Samsung? Asus? LG? Oops, I forget irrational apple hate is your raison d'etre.

Why not spend your time to improve the site and get some brand reliability reviews up? You keep shilling for Asus but they have horrible customer service which should be accounted for in your reviews but isn't because you haven't done the prerequisite research.
 
good for them! Making more money per unit is great news for apple.

p.s.: i own an ipad air
 
threeclaws said:
Why not spend your time to improve the site and get some brand reliability reviews up? You keep shilling for Asus but they have horrible customer service which should be accounted for in your reviews but isn't because you haven't done the prerequisite research.
Click to expand...

Yup, were a bunch of shills with terrible reviews and news. Apparently it works, we've trapped you here for almost 12 years. :cool:

In the future, your complaints about shilling / reviews etc. need to go to [email protected] instead of threadcrapping the news section. Thanks!
 
bpmurrGT said:
I was really disappointed 16GB is still the base model. I was really hoping they'd shift to 32GB at the same price-point.
Click to expand...

i agree, retina apps are huge now, 32GB needs to be the minimum.

my ipad is 32GB and some of the books i have on it are over 2 gigs. most simple games are half a gig anymore.
 
LeninGHOLA said:
Are you really whining about the price of a product you have no interest in and never intend on buying?
Click to expand...

Quite a flagrant assumption you've just made. I don't recall making any statement indicating a lack of interest in the iPad Air at any time :confused:

I've stated elsewhere that I avoid giving Apple my money in general but, I've also stated the iPad is the best damned tablet I've had the pleasure of using (I just didn't buy it, I was issued it) ;)

LeninGHOLA said:
Good job pointing out that people who like the products a company produces have no problem paying prices they seem to think are reasonable. Without that illustration, I'm sure everyone would be scratching their heads.
Click to expand...

threeclaws said:
It isn't just "apple fans" but I bet a lot of the new to apple customers are becoming fans now that they have ipads/iphones.
Click to expand...

You Apple zealots sure are a touchy lot! :D I can't even implicitly agree with you (it is better than the last version) while also pointing out parallels in industry (amazingly, it's not just Apple that people find selling things at prices that are seemingly ridiculous) and making a poke at semantics without it becoming an "us vs them" thread :rolleyes:

Apple is doing just fine, guys. I don't think the Fedaykin need to roll out whenever something critical of them hits the web :p
 
Manufactured outrage again...

When will people on the [H] realize that that setting price for a product has NOTHING to do with how much it costs to produce. Nothing at all. The two are completely separate.

The cost is based on real figures of what something costs to develop and manufacture.

The sales price is based on market analysis of what people are willing to pay for a product.

If the predicted possible sales price is large enough that it allows an acceptable profit above the costs of the product then it gets made, otherwise it doesn't.

Cost NEVER influences final price. it is determined completely independently based on market demand.

Since Apple has may fanboys and sheep willing to pay ludicrous sums for their inferior (but oh so shiny) products, Apple can get away with ridiculous profit margins as shown in this case. It's an enviable position to be in, but it feels like they teke advantage of their user base, to me.


Then again, Apple products are really more fashion accessories than they are tech tools, and as such, a whole different set of rules apply. If people are willing to spend 10 grand on a purse, why not over-pay for a trendy gadget?
 
I'm not at all an Apple Zealot. I just thought your comment and "FTFY" was a bit silly :p
 
Zarathustra[H];1040353448 said:
Apple can get away with ridiculous profit margins as shown in this case. It's an enviable position to be in, but it feels like they teke advantage of their user base, to me.
Click to expand...

Reminds me of up-until-recently-and-still-sorta-the-case Nvidia pricing! I'm still happy with my shiny new 780, though! :D
 
LeninGHOLA said:
Are you really whining about the price of a product you have no interest in and never intend on buying?
Click to expand...
Maybe if the product was more in line with the cost of other similar products those "whining" would actually buy.

Suffice to say I'm in that category in that I have no interest in these products... at the price points they set.
 
I kind of want an Air but my Surface Pro 2 has rendered most of my mobile devices obsolete. I'd get it if it had an OLED screen.
 
The thing that pisses me off with iPad pricing is just the memory.

Its cheap as DIRT right now, and yet Apple charges you out the ASS to go from 16GB to 32GB... :rolleyes:

Stop with the BS pricing already and give us more memory.
 
cortexodus said:
Reminds me of up-until-recently-and-still-sorta-the-case Nvidia pricing! I'm still happy with my shiny new 780, though! :D
Click to expand...

It's the way it is in all industries.

"Cost plus" pricing - as it is known when you consider cost in the pricing model is reserved to very limited situations (usually government contracts).

If you run your consumer product business by a cost plus model, you probably won't be in business very long.

To be fair regarding Nvidia pricing though, they WERE the top performing product on the market, and that has always come with a premium. I was willing to pay that premium for my Titan when it was new as it was the only single GPU solution able to play newer titles at 2560x1600, and I was completely and totally fed up with all the problems associated with SLI and Crossfire.

May not have been worth it to most, but it was to me. Still a good card, but if I were shopping today, I would probably go for an R9 290 (as long as AMD puts this "golden review sample" controversy to bed.)
 
cortexodus said:
Typical gouging, although Apple is far from being the only company that pulls this sort of crap.
Click to expand...

You are right. Every company does it (with the exception of some government contractors who are forced to adopt the "cost plus" model)

Price depends on what your customers are willing to pay, not on what something costs to make.

Unless you follow that rule, you probably won't be in business long.
 
Zarathustra[H];1040353488 said:
To be fair regarding Nvidia pricing though, they WERE the top performing product on the market, and that has always come with a premium. I was willing to pay that premium for my Titan when it was new as it was the only single GPU solution able to play newer titles at 2560x1600, and I was completely and totally fed up with all the problems associated with SLI and Crossfire.
Click to expand...

Totally agree. But I thought the pricing was still over the top. Just my opinion. I'm in the same boat as far as my 780 is concerned tho. It does what my prior SLI config did with a single card and the weird issues that would come up now and then with SLI have evaporated. There is something to be said for "getting what you pay for" in most cases :cool:
 
Ocean said:
i agree, retina apps are huge now, 32GB needs to be the minimum.

my ipad is 32GB and some of the books i have on it are over 2 gigs. most simple games are half a gig anymore.
Click to expand...

Agreed. A premium is one thing. ~$100 for 16gb more is absurd, not to mention that they are rapidly approaching impaired usability at the 16gb mark, and I'm saying that as a phone user. If the tablets are worse, it is even more absurd.
 
Megalith said:
I kind of want an Air but my Surface Pro 2 has rendered most of my mobile devices obsolete. I'd get it if it had an OLED screen.
Click to expand...
Apple doesn't appear to have shown much interest in OLEDs, unfortunately. They're wandering toward IZGO at this point.
 
LeninGHOLA said:
If people are willing to pay the price, why in the world would Apple reduce that price? Are you really whining about the price of a product you have no interest in and never intend on buying?
Click to expand...

Exactly. It's like those comedies where people try to haggle but do it wrong. Apple isn't stupid.

"I'll give you $500 for it!"
"No way! $450, and it's a deal!"

I'm getting one for my wife for Christmas. I do wish 32 GB was the base model for the price, though. Not that she'd fill it, but my 16 GB iPad 3 is full of books and apps and stuff.
 
wonderfield said:
Apple doesn't appear to have shown much interest in OLEDs, unfortunately. They're wandering toward IZGO at this point.
Click to expand...

I seem to recall that OLED has amazing response time and luminance versus power consumption but bad life expectancy while IZGO is pretty much just super-fast-LCD that uses less power.

I think I'd prefer the one with better life expectancy. I suppose I'd have to see it.
 
cortexodus said:
2GB books!? :confused: That's crazy, the biggest one I've got is only 36KB
Click to expand...

fiction books are small, text only.

i bought the ipad to read textbooks, some examples:

E.O. Wilson’s Life On Earth – 965MB (this one updates to huge sizes every few months)
McGraw Hill’s Algebra 1 – 1.09GB
Pearson’s Biology – 2.77GB
McGraw Hill’s Biology – 1.49GB
National’s Chemistry – 959MB
Pearson’s Environmental Science – 793MB
McGraw Hill’s Geometry – 1.22GB
McGraw Hill’s Physics – 1.25GB

worse yet, impossible to sort view size of installed books without an itunes backup to view, and this negates your ability to decide which ones you want to keep for current usage or reference.
 
The price will be set at what the market will bear. The cost of production has very little to do with it. But people still get butt-hurt when they find out that something they were willing to pay x for actually cost only y to make. What does it matter? You agreed to the price, and nobody made you do it.
 
The shorter life expectancy of OLED is moot based on the average rate at which mobile devices are replaced.

I now prefer to do my reading on my Note 3 despite its smaller screen. Nothing beats white text on a zero-black background.
 
cortexodus said:
I seem to recall that OLED has amazing response time and luminance versus power consumption but bad life expectancy while IZGO is pretty much just super-fast-LCD that uses less power.

I think I'd prefer the one with better life expectancy. I suppose I'd have to see it.
Click to expand...

apple tends to have planned obsolescence around 3 years later. which is probably pretty okay for most mobile devices with replacements every two years. if they get oled to last 3 years, i would think oled would be the superior option.
 
Do you have speed issues with rendering pages? I find that some of my larger books take a while, sometimes way too long to completely render the page. It does it in chunks, and in low to high resolution. This is with 125-250 MB books... Text books, as well. I am looking at a Surface to move to if it's a limitation of Apple hardware/software (not that I dislike the iPad, I love it, but I need it to do certain things well).

Ocean said:
fiction books are small, text only.

i bought the ipad to read textbooks, some examples:

E.O. Wilson’s Life On Earth – 965MB (this one updates to huge sizes every few months)
McGraw Hill’s Algebra 1 – 1.09GB
Pearson’s Biology – 2.77GB
McGraw Hill’s Biology – 1.49GB
National’s Chemistry – 959MB
Pearson’s Environmental Science – 793MB
McGraw Hill’s Geometry – 1.22GB
McGraw Hill’s Physics – 1.25GB

worse yet, impossible to sort view size of installed books without an itunes backup to view, and this negates your ability to decide which ones you want to keep for current usage or reference.
Click to expand...
 
Ducman69 said:
The thing that pisses me off with iPad pricing is just the memory.

Its cheap as DIRT right now, and yet Apple charges you out the ASS to go from 16GB to 32GB... :rolleyes:

Stop with the BS pricing already and give us more memory.
Click to expand...

That, and also add a SD/uSD slot...
 
You must log in or register to reply here.
Back
Top