So, how did Apple resize all those 9.7" screens to 7.9"?
I've read some crazy comments about the Mini, but this one might be the craziest yet!
Haven't you seen the display punch? It's just like the device that cuts regular SIMs to nano size.
So, how did Apple resize all those 9.7" screens to 7.9"?
I've read some crazy comments about the Mini, but this one might be the craziest yet!
Gross profit, maybe, but not net profit or "real" profit. Still, $400 million pays for a lot of R&D and overhead....
not quite.. The BOM analysis did not take into account of a bunch of manufacturing cost: profit to manufacturer, Parts broken in manufacturing, rework cost, warranty cost, shipping cost (from supplier to assembly plant and from assembly plant to our house. Anyone pay for an Fedex shipping lately would know it is costly), profit margin for reseller like Walmart, Target (and cost of running Apple store if they are sell through Apple). Then you throw in the marketing cost, design cost, regulatory approval (every country has a different approval process for electronics) and corporate overhead..The base Mini will hardly make any money. The high end unit will do better but they won't be at a profit level of Ipad 3 or Ipad 2, let alone Iphone 5.
It's brilliant.
Let the sheep and early adopters buy up all their old hardware parts (ipad 2 screens).
Never ceases to amaze me how everyone suddenly becomes an armchair accountant (50 cents for flour, dollar for cheese, 75 cents for sauce -- why are they charging me $12 bucks for a pizza?) without taking the time to consider what it actually costs to develop, manufacture, market, distribute, sell at retail and support a product.
Well we do know that stores make very little off idevices. Make most their rev from accessories. Chinese manufacturing labor is the among the cheaper options. Apple was found to spend relatively low R&D last quarter, with respect to its competitors. Distribution can't fluctuate too much across competitors.
That leaves marketing.
They have persuaded you to pay more for their gadget than other gadgets.
Oh, and legal fees. You pay for that too.
So does your local grocery - your point makes little sense with either example.
Apple was found to spend relatively low R&D last quarter, with respect to its competitors.
I agree. theyre using outdated internals and a un-retina sceen and still charging a premium over other higher spec-ed tablets. I agree that Apples app ecosystem is way ahead of the competition but does that justify the price? Dont get me wrong i love the mini but the price is just not right.