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Apple Watch Sport Component Costs Estimated at $83.70, Which Won't Sit Well With Tim Cook
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hmm wonder how Apple has 200 billion in the bank?? Hmm??? Let think about it for a sec.
Yes, I can see how Chinese labor slave-wages can constitute the other 76%, compared to American housing construction / Union labor jobs. Good comparison.
That's the other one. We've just read about "profit margin" because someone thinks that costs of parts should be more than 30% of a products retail price (it _never_ is. Go to your favorite supermarket, and _nothing_ in there has a higher "cost of parts" percentage), so obviously "Chinese slave labour" cannot be far away. Not that the people claiming either have any clue what they are talking about.
Those complaining about this not incorporating R&D/Marketing are missing the point
As Apple goes thinner/smaller with everything, the % of the BoM relative to the overall cost IS GOING LOWER COMPARED TO THE COMPUTER LINEUP. Not higher, as if this was some specialty 'magical' device, it's LOWER.
This calculation has _NOTHING_ to do with R&D/Marketing costs in terms of the BoM % vs. sale price of the product. They have R&D/marketing for their computer lineup. Why is the % of BoM cost becoming lower for every new Apple product?
Easy. The thinness that Apple wants to push on you? It's because they don't want you upgrading your ram/hard drive and dealing with repairs/genius bar appointments. They are pocketing the extra money because they can. They're not giving you a better product with components whose total BoM price comprise a higher % of the sell price.
(BoM = bill of material)
As Apple goes thinner/smaller with everything, the % of the BoM relative to the overall cost IS GOING LOWER COMPARED TO THE COMPUTER LINEUP. Not higher, as if this was some specialty 'magical' device, it's LOWER.
This calculation has _NOTHING_ to do with R&D/Marketing costs in terms of the BoM % vs. sale price of the product. They have R&D/marketing for their computer lineup. Why is the % of BoM cost becoming lower for every new Apple product?
Easy. The thinness that Apple wants to push on you? It's because they don't want you upgrading your ram/hard drive and dealing with repairs/genius bar appointments. They are pocketing the extra money because they can. They're not giving you a better product with components whose total BoM price comprise a higher % of the sell price.
(BoM = bill of material)
Erm, those are just the component costs. For an electronic product, that's always going to be just a fraction of the total costs. What about R&D, marketing, advertising, manufacture, distribution, support, etc, etc...
Interesting to know, but not exactly surprising.
Interesting to know, but not exactly surprising.
I don't understand these discussions. Just look at Apple's record profits every quarter.
Based on such profits, the only conclusion you can draw is that Apple has huge profit margins on their products. There are even charts showing that Apple, even if not selling the most quantities of smart phones, tablets, etc, still take the majority of the profit in the market.
Based on such profits, the only conclusion you can draw is that Apple has huge profit margins on their products. There are even charts showing that Apple, even if not selling the most quantities of smart phones, tablets, etc, still take the majority of the profit in the market.
Read the comment directly above. The BoM percentage for Apple's new devices is going LOWER.
Why do people assume that their component cost estimates are accurate? Tim Cook specifically said they're not.
Congratulations
You now have a clear idea of the dominating economic idea in the 21st Century: everything we make is all the same as everybody else, a commodity. It should be produced wherever in the world wages are lowest and shipped to wherever wages are the highest.
One of the dumbest ideas humans have ever come up with.
You now have a clear idea of the dominating economic idea in the 21st Century: everything we make is all the same as everybody else, a commodity. It should be produced wherever in the world wages are lowest and shipped to wherever wages are the highest.
One of the dumbest ideas humans have ever come up with.
Can we talk about a wacky headline on this story?
"Apple Watch Sport Component Costs Estimated at $83.70, Which Won't Sit Well With Tim Cook"
Really? I would think that whatever the Apple watch component cost breakdown is well known by Tim Cook.
Perhaps the writer meant to imply that public knowledge of the costs may not sit will with Tim Cook. But I imagine that Tim is pretty used to accurate (or not) assessments of parts given that it only tells a fraction of the story.
Really no need to shoehorn the comment about Tim in the headline - it can easily be commented/referenced in the story.
"Apple Watch Sport Component Costs Estimated at $83.70, Which Won't Sit Well With Tim Cook"
Really? I would think that whatever the Apple watch component cost breakdown is well known by Tim Cook.
Perhaps the writer meant to imply that public knowledge of the costs may not sit will with Tim Cook. But I imagine that Tim is pretty used to accurate (or not) assessments of parts given that it only tells a fraction of the story.
Really no need to shoehorn the comment about Tim in the headline - it can easily be commented/referenced in the story.
Apple TV has historically been considered to fall under the iPod umbrellayou'll find it under the iPod section of Apple's website (for now). I imagine that'll change here in a few weeks.
It depends on which watch you're talking about. It's much closer to the cost of the 15 millionth one that rolls off the assembly line. But the first one cost hundreds of millions, if not billions of dollars. See how that works?
That's pretty silly. You are not just buying parts, but a usable product. I am not sure how familiar you are with product development, but that's like saying my blue jeans are made of thread that cost only $5 while the pair of jeans cost $50.
Slight logic fail. People here are complaining to each other - they aren't complaining to Apple or their employees.
Also I'd argue that GREAT steak restaurants cuts and aging process of the beef are far superior than what you can buy on your own
But I digress.
Tim's comments on the BoM being inaccurate is his insecurity coming out. Hard to look at these numbers and not have negative sentiment towards Apple.
With Cook, it's all about image.
What about the software? The OS and applications? That's just an arrangement of electrical charges, no additional component cost at all.
TOTAL COST OF SOFTWARE = $0
Am I doing this right??
TOTAL COST OF SOFTWARE = $0
Am I doing this right??
Also I'd argue that GREAT steak restaurants cuts and aging process of the beef are far superior than what you can buy on your own
And the
Watch's OLED screen, Taptic engine and S1 chip are better than any you can buy on your own.
You're still wrong. It's the cost of the materials that make up the watch. It isn't a watch until it's assembled, which obviously isn't factored in either.
And the
Well - you can't actually buy those things - at least not the S1 or taptic engine, right? Where are you going to buy those?
Anyway - it was a tongue-in-cheek comment I was making... as a foodie