I am curious, does it actually cost apple 100$ to bump the storage of the iPad from 16 to 32gb? Or even 32 to 64? Or is it all just another marketing trick?
I am curious, does it actually cost apple 100$ to bump the storage of the iPad from 16 to 32gb? Or even 32 to 64? Or is it all just another marketing trick?
I am curious, does it actually cost apple 100$ to bump the storage of the iPad from 16 to 32gb? Or even 32 to 64? Or is it all just another marketing trick?
I was off a little. It's actually $16.80
http://www.isuppli.com/Teardowns/News/pages/New-iPad-32-GB-4G-Carries-364-35-Bill-of-Materials.aspx
The NAND flash memory is one of the key profit-generating components for Apple in the new iPad line, as it has been in previous iPads and in the iPhone family, Rassweiler noted. Apple makes far and away more money in selling consumers NAND flash than NAND flash manufacturers make selling it to Apple. And the more flash in the iPad, the higher the profit margin there is for Apple.
For example, the retail price of the 32GB LTE-enabled new iPad is $100 higher than the 16GB model. However, Apples BOM for the 32GB version is only $16.80 more compared to the 16GB model.
Haha, I thought so. Man, that's $83.20 pure profit for apple per device sold and $166.40 for a 64gb model.
If it was easier to open my device I'd install more myself, but apple has it locked down like a bank safe.
This is it in a nutshell...once you fill that sucker up with media and pictures and ebooks and junk it's worth an extra 100 bucks to not have to worry about it and manage things...because we can't crack open the back and pop in a couple of memory sticks. Next best thing is stuff like dropbox integration for particular apps.
Don't forget that it doesn't factor in shipping cost which is probably another $7-10 per unit from China, just a guess. And if you decide to return it, they pickup the tab for return freight. But yeah they're still banking in money with those profit margins.
Don't forget that the NAND Flash is soldered to the motherboard, that's the trade off but I do agree the profit margin is a bit much.
They cost the same to ship to the US, no matter how much Flash is installed.
This is where the ability to plug in storage really helps over time.
Buy an iPad 1, then the 2, then the 3... and it will total hundreds extra for getting more storage each time.
With tablets that have add-on storage, the extra storage (at a much lower price to begin with) can often be bought once and reused on the next tablet purchase.
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While this is true, the resale on higher storage capacities also helps offset the initial investment.
And you could add customer returns and return shipping along with advertising cost, etc. So yeah while Apple is making a nice profit from the iPad there are other hidden cost.
And remember NO company is EVER on TOP for FOREVER. Ask Nintendo who was rolling in the dough selling their games and consoles. As the market changed they are now selling some of their game consoles at a lost.
Maybe not forever, but apple will be there for quite a while if they don't screw it up. I mean, technology is the future, and nobody is better a technology than apple.
I am curious, does it actually cost apple 100$ to bump the storage of the iPad from 16 to 32gb? Or even 32 to 64? Or is it all just another marketing trick?
I am curious, does it actually cost apple 100$ to bump the storage of the iPad from 16 to 32gb? Or even 32 to 64? Or is it all just another marketing trick?
Does the storage difference justify the $$$ difference?
Production costs and justification for the buyer are two entirely different things. It certainly doesn't cost Apple the price difference between the two capacities. Selling something at materials cost is not a viable business model. As for justification -- that's for you to determine based on your specific needs/wants. Plenty of people do justify the higher capacity devices. Whether you do or not is a different matter.I am curious, does it actually cost apple 100$ to bump the storage of the iPad from 16 to 32gb? Or even 32 to 64? Or is it all just another marketing trick?
Production costs and justification for the buyer are two entirely different things. It certainly doesn't cost Apple the price difference between the two capacities. Selling something at materials cost is not a viable business model. As for justification -- that's for you to determine based on your specific needs/wants. Plenty of people do justify the higher capacity devices. Whether you do or not is a different matter.