iPad Components Cost $259

Gibbage said:
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
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So are consoles... and they've had this thing in dev for like a decade, so who knows if they've made their money back yet. I just find it idiotic to be an Apple hater or MS hater or nVidia or ATi hater. It gets you nothing, none of these companies give a shit about you (not you specifically Gibbage, people in general) and yet folks line up to take potshots. I enjoy tinkering and overclocking, not everyone does but I don't sit around mocking people who don't and I enjoy a beautiful gadget no matter who makes it. As per usual, I suspect generation 3 of the iPad will be quite nice and they'll have unhobbled it. Anyone who says it's a giant iPod Touch has never used one and I have to laugh when the only use case most people can come up with for multitasking is Pandora/surfing in combination. Don't get me wrong, I want to be able to do that, but it's like everyone is cribbing from the same notes and no one has an original thought in their head about it. Especially ironic when they go on and on about the folks on the other side being sheep. If you really want to be a non-sheep, buy MS AND Apple products that appeal to you and hack Linux in your spare time.

We all better get back to the front page now, it's probably time for Steve to bag on Sony or Apple again to generate traffic. It's getting to the point where I don't read the news on weekdays when I know he's around. Still love Brent and Kyle and Dan, though.
 
Why does it matter what the margin is? Either you think it's worth the money, or not.
 
when it comes down to it, Apple people feel that kind of profit margin is acceptable. When is this ever a shock?
 
iceredwing said:
when it comes down to it, Apple people feel that kind of profit margin is acceptable. When is this ever a shock?
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Any profit margin is acceptable. Whether or not the price of the product matches the value I place on it is another matter altogether.
 
ummm why is this an issue? just factoring parts in thats less than 50% profit, when you throw in advertisements, rent, salaries, future development, ect they probably only keep like 5-10% in profits which isn't amazing, they just sell a lot so that nets them a lot. Plenty of other companies have a much higher markup; 50$ shoes probably use 50 cents worth of material but people don't get pissed over the 99% profit margin on that. It's basic business.
 
lathode said:
In other news the HP Slate has $150 in hardware and is going to sell for $550. What idiot is going to buy that :rolleyes:
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Nah, more like... HP Slate has $545 in hardware and sells for $550. The software you'll be using is worth $5. Have fun with your user experience!
 
shurcooL said:
Nah, more like... HP Slate has $545 in hardware and sells for $550. The software you'll be using is worth $5. Have fun with your user experience!
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I will if it has a real digitial pen cause with OneNote that's about 90% of what I would want out of this thing.
 
Apple = Status quo, these days. Tbh I can't stand Apple, reminds me of my greedy government.
 
mrdlouisd said:
Apple = Status quo, these days. Tbh I can't stand Apple, reminds me of my greedy government.
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Apple takes what they want from you by force, and compels you to buy its products for others?

Do go on with your excellent analogy.
 
Matthew1034 said:
and this doesn't happen with each year's $500 video cards and $1,000 procs?
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As has been said earlier. Apple doesn't follow the same development cycle as pc manufacturers (Jobs was even proud when he said it) . PC manufacturers *invest* in *real* hardware R&D and recoup their expenses afterwards. Apple pays for everything up front and make a profit from the very first ipad. And that's not even much of an R&D.

BTW, how much do you *actually* spend when you buy an ipad? Sure, it's $500.00 for the basic model, but how much additional do you spend for it? How often or likely does this scenario come up?

http://shopping.yahoo.com/articles/...ipad-purchase-became-a-1170-credit-card-bill/

Can you imagine what kind of desktop rig you can build with that?! For that price, i'd skip the slate altogether and go for a full tablet!
 
MavericK96 said:
Maybe you should read the thread a bit better. Most products don't go for a 50%+ profit margin, like Apple stuff does.
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Maybe you should read the thread a bit better. Most products don't sell for the cost of their parts. You know...you need to "assemble them", "test them", "package them". I know...crazy stuff. Sorry....
 
Trepidati0n said:
Maybe you should read the thread a bit better. Most products don't sell for the cost of their parts. You know...you need to "assemble them", "test them", "package them". I know...crazy stuff. Sorry....
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So does the slate. Most products do all that and keep the price low. Maybe you should read the thread a bit better.
 
ANand's review is actually a really great and honest upsides/downsides article.
 
This isn't shocking in the least. Apple is in the business of making products look "slick" and getting morons to pay twice what they're worth.
 
That's right, anyone who likes something that you don't is a moron. It's interesting all of this "I think this, therefore it's true and anyone whose opinion is different is wrong and evil and stupid"... what a load of horseshit, it's just like our political discourse these days.
 
JCDenton said:
This isn't shocking in the least. Apple is in the business of making products look "slick" and getting morons to pay twice what they're worth.
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They're worth what people are willing to pay for them. Value is placed on the item by the individual purchasing it.

A psychologically normal human being--read: someone who isn't suffering from Apple Derangement Syndrome--would have said something more like "Apple sells its products with a "slick" image and people value that enough to pay what I think is a high markup."

Of course that still wouldn't change the fact that you don't know what people value about the product, making your statement nearly wholly useless from beginning to end.
 
badcaps said:
They're worth what people are willing to pay for them. Value is placed on the item by the individual purchasing it.

A psychologically normal human being--read: someone who isn't suffering from Apple Derangement Syndrome--would have said something more like "Apple sells its products with a "slick" image and people value that enough to pay what I think is a high markup."

Of course that still wouldn't change the fact that you don't know what people value about the product, making your statement nearly wholly useless from beginning to end.
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http://yfrog.com/eqsn2mnqj
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Hope this helps. People who will pay $500 for something with almost no functionality just because it has a cool label are morons.
 
JCDenton said:
http://yfrog.com/eqsn2mnqj

Hope this helps. People who will pay $500 for something with almost no functionality just because it has a cool label are morons.
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Your behaviour says more about you than it does about people who bought an iPad.
 
JCDenton said:
Hope this helps. People who will pay $500 for something with almost no functionality just because it has a cool label are morons.
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Ya know, it's hilarious: You waste time name calling, trolling in fact, throw unbalanced images around, all because there's a little product sitting on some retailer's shelf and somebody other than yourself bought it.

You come across as insecure. Period.
 
LOL - I just saw the article. If I were an AAPL shareholder, I'd be grinning wider than the Joker in "The Dark Knight". That's almost a 100% profit on the hardware. Compare that to how Sony was (and I think still is) selling PS3 (now PS3 Slim) at a loss for each unit.
 
beowulf7 said:
That's almost a 100% profit on the hardware.
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You have no idea what their profit margin is. The only costs revealed thus far are the combined prices of the components; to suggest that they're making even the bulk of the difference in profit is extremely liberal, not to mention it's just ass-borne guesswork.

They aren't selling plastic baggies of parts.
 
badcaps said:
You have no idea what their profit margin is. The only costs revealed thus far are the combined prices of the components; to suggest that they're making even the bulk of the difference in profit is extremely liberal, not to mention it's just ass-borne guesswork.

They aren't selling plastic baggies of parts.
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You can actually guess, because they're using the same methods as other manufacturers, and those guys can still keep their prices low.
 
rflcptr said:
That's a really shallow comparison. Which iPod touch has an A4 CPU, for example?
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its the hammy down of the A8 cortex. Not exactly innovation and something they plan on using anyways for other netbook like devices. It doesnt stop at the iPad for Apple. Just like the iphones os being "ported" to the ipad. The ipad is neither innovative or special.

It does what an ipod touch does, except on a larger screen (not scale). Okay so it adds 3G in the more expensive models. Now thats innovative. no wait my 2008 laptop has a slot for my att 3g sims. The app store? Already invented and again "ported". Wait a minute. Its a Mac computer slimmed down and the first. Again, Not exactly.

I can go on, others can go on. We can discuss this to death. At the end of the day, it is an oversized ipad with 3G capable internet....for an extra $$$$$ YEAY!
 
rflcptr said:
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.
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would you call a one laptop with a 4850 gpu and another with a 4870 gpu innovation?
 
HomerRulez said:
I can go on, others can go on. We can discuss this to death. At the end of the day, it is an oversized ipad with 3G capable internet....for an extra $$$$$ YEAY!
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No it's not. I just got back from the mall and an unlocked 3GS us STILL $1,097.00. This iPad's waaay cheaper than an iphone.

Still overpriced tho.

BTW, i haven't checked, but if the manufacturing cost of the 3GS is anything like this, then we've been paying well over $600 for the apple logo.
 
I've looked up the iPhone 3GS. It's about $180.00.

I was wrong, we weren't paying $600.00 for the apple logo. More like $900.00. That's a %500 profit margin isn't it?
 
badcaps said:
You have no idea what their profit margin is. The only costs revealed thus far are the combined prices of the components; to suggest that they're making even the bulk of the difference in profit is extremely liberal, not to mention it's just ass-borne guesswork.

They aren't selling plastic baggies of parts.
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I was just talking about their hardware prices, which is about half of the selling price. Compare that to when Sony PS3 first came out where their hardware price was significantly higher than the selling price.
 
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