Neither do other mobile companies.
![[H]ard|Forum](/styles/hardforum/xenforo/logo_dark.png){kind=logo}
iPad Components Cost $259
- Thread starter HardOCP News
- Start date
Neither do other mobile companies.
That's a really shallow comparison. Which iPod touch has an A4 CPU, for example?
I was canvassing for a phone last year. Iphone 3GS 32Gig was well over $1,000.00.
The iPhone 3GS, actually. The iPad uses the same GPU as the iPod Touch and 3GS. The CPU itself is a Cortex A-8 clocked at 1ghz. The iPhone 3GS also has a Cortex A-8, just clocked at 600mhz (underclocked, actually - the CPU is rated for 800mhz). My Droid is currently running an A8 at 1.2ghz, and the Nexus One's Snapdragon ships at 1ghz. It even has the same amount of RAM as the iPhone 3GS.
People saying the iPad is simply a supersized iPod Touch are dead on. Aside from a bigger battery and a faster clocked CPU (that only competes with smartphones and no where near tablet C2D CULV speed), it has the same hardware and same software.
The iPhone 3GS in all forms uses the ARM A-8, correct. But the iPad uses Apple's A4 SoC chip. They are different in many ways. The iPad's RAM is also on the CPU's die, which (theoretically) will improve performance. And the GPUs, while similar, also are not the same.
Trepidati0n
[H]F Junkie
- Joined
- Oct 26, 2004
- Messages
- 9,269
After build and assembly, the manufacturer expects to make 40% gross margin (this is what covers all the people, the buildings, etc). This does not include the profits of the people who are selling. If we assume that the main seller makes 20% of the $500, that brings it down to ~$400 to apple, then take off the 40% of that for apples gross margin and $240 for an assembled iPad. Therefore, by what you said steve...apple isn't making as much as they want too.
It is a prefect comparison the only difference is MS can't, or more likely won't compete with Apple. The consumer would win big time if MS decided they were gonna get serious about Zune, and Wimo. They don't market these products a fraction of what they do on the Xbox. Why I have no idea, because Zune is awesome, and Wimo could be as well especially if it were built for a limited model of phones.
Apps and music could replace games and the market would be very similar.
it's not that shocking, what's annoying.. especially as a reseller, is that they will sell that 499 ipad to us for 460 .. so they make 200$ we get shafted and make 39, until someone price matches it elsewhere and suddenly were making 29, or 19, or in some cases taking a loss on it.
It's not just apple tho, the entire computer hardware industry is like that, barely a 2% markup on stuff that is sold within the B&M storefronts.
It's not just apple tho, the entire computer hardware industry is like that, barely a 2% markup on stuff that is sold within the B&M storefronts.
The RAM isn't on the die itself. It is on the top package of the POP, though.
Teardowns show the same performance. Same performance + being an SGX GPU means that it is extremely likely that it is an SGX 535 - which is identical to what the iPhone 3GS has.
And Apple's brand of SoC isn't going to make it any faster, revolutionary, or magical. The iPad's hardware isn't any better than any other high end smartphone, and it can't compete with some of the new smartphones coming out this summer. And yet, Apple is trying to have it compete with netbooks with Atom processors and real GPUs? Even a year old netbook is going to stomp the iPad into the ground when it comes to performance.
So, you're conceding that the iPad is not a giant iPod Touch?
radioactivez0r
Gawd
- Joined
- Apr 13, 2008
- Messages
- 567
What's with the overzealous Apple hate? Fine, you don't like the iPad, I won't buy one myself nor most other Apple products because of their price, but to fault a company for making a great profit? Did you run out of legitimate reasons to make fun of it?
Hahahaha, no. Are you conceding that the iPad is a giant iPod Touch?
Shame, I almost felt my time was spent well.
If only that were true. As i've posted above, the $699.00 64Gig model is being sold here for over $1,100.00.
Parmenides
Supreme [H]ardness
- Joined
- Apr 25, 2006
- Messages
- 6,578
Actually, it's 4 iPhones running Eyefinity.
LOLOLOL
In other news the HP Slate has $150 in hardware and is going to sell for $550. What idiot is going to buy that
To be more realistic, other manufacturers will be coming out with even better models and prices. If the slate's hardware really does cost $150.00, very soon we'll be getting either a cheaper tablet or a more featured one from other manufacturers. Competition on the PC benefits the users.
From someone who is a former hardware vender, most PC hardware gets only about 15-20% Markup over cost. Thats about average. 50% markup is very high for electronics.
As for console comparison's, most consoles are sold at a LOSS when released. Sometimes by hundreds of $$. The first game console to ever be sold for a profit on release was the Wii. They get there money back on game licensing, and are able to slip production cost's enough to turn a slight profit some years later. I think Sony only started earning profit once it went to the Slim.
So most PC/Electronics get 20% markup
Game consoles sold at a loss
Apple crap sold at 50%+ Markup
Apple tax at work. This is all old had by now.
As for console comparison's, most consoles are sold at a LOSS when released. Sometimes by hundreds of $$. The first game console to ever be sold for a profit on release was the Wii. They get there money back on game licensing, and are able to slip production cost's enough to turn a slight profit some years later. I think Sony only started earning profit once it went to the Slim.
So most PC/Electronics get 20% markup
Game consoles sold at a loss
Apple crap sold at 50%+ Markup
Apple tax at work. This is all old had by now.
From someone who bothered to read the thread: Apple sells first gen products at a high price so they don't operate at a loss.
Posted via [H] Mobile Device
Consoles are a whole different business - they are sold at a loss to sell games and services and the software recoups the cost of the console. 50% is in no way unusual for non-console CE devices. Home theatre equipment is the pathological extreme end of this with markups in the 100% or more range sometimes.
I really dont think comparing the Ipad to a game console is all that far apart, biz wise.
You make a piece of hardware, thats locked into a very specific DRM, so its users can only buy YOUR software and or hardware for it.
Thats how consoles work. Thats how the Ipad/pod/phone works. How much does Apple get for its apps? Considering the billions its raking in from Ifart and Ibeer, they could subsidies the Ipod and Ipad with that money, like consoles. They dont. So they rake in money hand over fist on both sides.
US cell phones also work like this, and you can get a free $500 with a 2 year contract. Again, the hardware is subsidized by the service, like the Ipad or consoles.
Its one thing to make money. Its another to rape your customers because they are mindless sheep that will buy anything shiny that you make.
You make a piece of hardware, thats locked into a very specific DRM, so its users can only buy YOUR software and or hardware for it.
Thats how consoles work. Thats how the Ipad/pod/phone works. How much does Apple get for its apps? Considering the billions its raking in from Ifart and Ibeer, they could subsidies the Ipod and Ipad with that money, like consoles. They dont. So they rake in money hand over fist on both sides.
US cell phones also work like this, and you can get a free $500 with a 2 year contract. Again, the hardware is subsidized by the service, like the Ipad or consoles.
Its one thing to make money. Its another to rape your customers because they are mindless sheep that will buy anything shiny that you make.
Thats a reseller/distributor, and you dont make squat and need to rely on volume. Im talking about the manufacturers like Dell, HP, Sony, and Toshiba. Im sure there numbers are all between 10-20%.
I really dont think the term "lost leader" has ever been said at Apple.
Do you have that severe a case of internet withdrawal ADD or are you just severely constipated? You ought to be able to go without the internet for the <<5 minutes it ought to take you to shit.
Cerulean
[H]F Junkie
- Joined
- Jul 27, 2006
- Messages
- 9,476
There was an article I read sometime last year that had a list of well known products and broke it down per component cost. I don't know the URL to that article any more, but it was a very interesting and worthy article!
pedophilekiller
Limp Gawd
- Joined
- Jul 29, 2007
- Messages
- 462
I am very surprised that the iPad costs this much to make. The mark up in audio industry is 5 to 20 fold. My $2500 amplifier has only $300 worth of components. Point is: businesses have to make money. The multiplier is proportional to the volume of sales. Apple has a near infinite fan base so they're multiplier is not as large as I imagined. They can pump out sales like crazy.
MavericK
Zero Cool
- Joined
- Sep 2, 2004
- Messages
- 31,890
I think it's more accurate to say they have a small, but extremely devoted, fan base that will buy one (or more) of everything they produce.
Right, thus the resounding success of AppleTV... *crickets*
High end audio is a differant industry, were you need to recover development cost's from sales that only measure in the hundreds of units, maybe thousands of units. On the otherhand, Apple sold 300,000 on the first day. Some speculate as many as 700,000.
Lets average about $200 of profit per sale, x 700,000 units. $140,000,000 in PROFIT. Im sure that in the first day, that recovered the cost of development. Not to mention the profit from the apps and accessories.
At one point in time, Apple was the little guy, fighting the good fight against the evil corperate giants that sold everyone white boxes with no personality.
Now they ARE the evil coperate giant that sells everyone silver boxes with no personality.
Lets average about $200 of profit per sale, x 700,000 units. $140,000,000 in PROFIT. Im sure that in the first day, that recovered the cost of development. Not to mention the profit from the apps and accessories.
At one point in time, Apple was the little guy, fighting the good fight against the evil corperate giants that sold everyone white boxes with no personality.
Now they ARE the evil coperate giant that sells everyone silver boxes with no personality.
OK, Steve, go ahead and ban me, I don't care, but this is just an absolutely moronic summary. No product ever launched sells for the cost of its parts. R&D, marketing, costs of manufacture, taxes, wages of employees, market forces, not to mention profits, all factor into the retail price of a product.
Ugh, why do I read this site? Definitely not for the Mensa crowd.
Ugh, why do I read this site? Definitely not for the Mensa crowd.
MavericK
Zero Cool
- Joined
- Sep 2, 2004
- Messages
- 31,890
Maybe you should read the thread a bit better. Most products don't go for a 50%+ profit margin, like Apple stuff does.
You have no idea what their profit margin is. Those numbers, while impressively large, clearly came out of your rear end.
racingultimatedragon
Limp Gawd
- Joined
- May 9, 2006
- Messages
- 246
Fuck apple.