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MacBytes
Jan 30, 2008, 10:29 PM
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Category: Apple Hardware
Link: News flash to reporters and analysts: Apple doesn't do loss leader products (http://www.macbytes.com/link.php?sid=20080130232916)
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Posted on MacBytes.com (http://www.macbytes.com)
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shadowfax
Jan 31, 2008, 01:06 AM
I really don't trust iSuppli. I guess it's short for iSuppli useless speculative information about products?

Sayer
Jan 31, 2008, 06:24 AM
iSuppli has no idea what kind of deep discounts for very large quantity orders that Apple gets, thus their speculation could be way off the mark on a variety of component costs (like processors, usually the most expensive part).

Apple also locks in prices with suppliers in long-term contracts to withstand price fluctuations in things like RAM that can change prices daily.

sebastianlewis
Jan 31, 2008, 08:14 AM
I read two articles this morning from mainstream news sources that made me realize most people writing about Apple don't really understand its marketing and how it sells its products. Secondly, both articles show a remarkably poor understanding of product businesses overall.


Congratulations, you just realized that the world of journalism is fully of really crappy very biased reporters who should have taken an economics class before graduating.

First, I read TheStreet.com claiming that because of the upcoming recession, Apple should slash prices on iPhones to guarantee it makes its sales goal of 10 million phones by the end of 2008.

Congratulations on also realizing that TheStreet is the worst of the lot. Scott Moritz and Jim Cramer use their position to try and manipulate the market to their own liking. Don't worry, you're not the only one that's late, lots of people are coming around now realizing that hey, maybe most of those headlines just copied and pasted from another news source (or as good as if it's an AP article) aren't so true after all.

The second bit of fiction I read was from Silicon Valley Insider claiming that at current prices, Apple is subsidizing Apple TV purchases through movie rentals, because iSupply claims the parts cost of the 40 GByte device is $237 and the device now sells for $229.

Hmmm... I don't pay attention to Silicon Valley Insider's track record much, but iSuppli is a bunch of idiots so I think SVI gets a Zoon for publishing their trash.

Also see: any piece of trash published by ZDNet, most of CNET, Troy Wolverton of the San Jose Mercury News, and Mike Elgan of Computerworld.

Sebastian

SthrnCmfrtr
Jan 31, 2008, 08:18 AM
I really don't trust iSuppli. I guess it's short for iSuppli useless speculative information about products?

Yeah, I have serious doubts they have even the most basic information about this sort of thing. Apple sell at a loss? Hehehehe...

cwt1nospam
Feb 1, 2008, 01:31 PM
Also see: any piece of trash published by ZDNet, most of CNET, Troy Wolverton of the San Jose Mercury News, and Mike Elgan of Computerworld.
You forgot Enderle.