Hard to compare two different sized units as one being a better buy....if you want the larger screen, getting a smaller one is never a better deal, as you sacrifice what you really need or want.
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iPad Air Component Costs Estimated to Begin at $274, Roughly 13% Cheaper Than iPad 3
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Hard to compare two different sized units as one being a better buy....if you want the larger screen, getting a smaller one is never a better deal, as you sacrifice what you really need or want.
The difference here is the margins for the third party outfit. The food industry allots resellers wide margins for resale.
Apple offers slim to no margins for third party resellers. As an example, when the iPad mini retailed for $329.99, they were being sold to big players like Target, Best Buy etc for roughly $300. The cellular models are sold at no available margin to the retailer, but for those that have partnerships with the carriers receive a bounty for the activation.
Apple's quarterly profit margin (company wide) was just announced in the 36% range (includes R&D, taxes, *everything*) and I believe they have over $90 Bil in cash.
They could EASILY drop the base model to 32 gigs (and probably add an 8mp camera). But people are so enthralled that they will make the latest iThing their third priority in life after rent and food. And then people complain they have no money hahahaha.
They could EASILY drop the base model to 32 gigs (and probably add an 8mp camera). But people are so enthralled that they will make the latest iThing their third priority in life after rent and food. And then people complain they have no money hahahaha.
The problem with your argument, is that it is rational... and there is no room for that in this discussion!
Still doesn't justify 1GB RAM and 16GB base storage in 2013. Moreover they charge $100 for additional 16GB storage which costs them next to nothing. The top-end model is nearly twice the cost of the base model for just more storage and LTE. There's no denying its just a business decision, they'll include 2GB RAM next year and call it revolutionary, magical and other fancy words.
It is quite comical. I do not like to use this term (because it is annoying), but it's "business 101."
They charge what people are willing to pay. It's not sophisticated marketing, but Apple is able to say, "Starting at only $499." I wouldn't buy the base model, but it's more attractive than saying, "Starting at only $699," which is still more appealing than saying "Starting at only $700." Apple wants to make a certain amount from each iPad sale, and it's not $499. Auto manufacturers do the same thing. That base price car is not going to be sitting on the showroom floor, and you're going to be paying for a lot of additional features.
Take a look at the markup on a diamond ring, and then the iPad will seem like a useful bargain.
Take a look at the markup on a diamond ring, and then the iPad will seem like a useful bargain.
Right, because all the engineers and designers that Apple hired to create the product, the software, the firmware, and the packaging all work for free.
There is no slaughter. People vote with their wallets. Every "sheep" is free to walk out of the Apple store and order a Surface, or a Kindle from Amazon, etc. if they think Apple's markup, compared to the iPad's benefits, is more unfair than that of the competition's. Some do. 100's of millions of customers don't.
Some shareholders buy ramen from the stock dividends.
...and yet the iPad is locked to the carrier you chose, except Verizon which has an unlocked GSM. (last I heard).
WTH is iPad locked like this??
Sounds like you need a therapist, or should just stop with the stupid hyperbole. You don't like your experience with your Apple products? There are plenty of others to choose from.
Quit making a voluntary transaction for luxury goods seem like something you're forced into.
Funny thing there is that you actually get the best value by doubling all the way up to 128 GB.
Innovation is not an expense.
On the other hand it doesn't include salaries, however many billions of sq/ft of space Apple now occupies, legal fees, and countless other overhead items.
heh heh, need to retake a refresher on the six grade reading class?
The distribution cost (BB, Walmart don't like to work for free
) cost lone is anywhere between 10 to 15% of MSRP or $50-$75 a tablet on the base 16G model. Then you throw in the warranty cost, shipping cost, advertising, inventory cost, etc...Still think Ipad air has 45% margin? I have a bridge to sell )
No, you don't understand. For $500 you get an ipad with 16gb storage, not just 16gb.
I'm still grandfathered on unlimited AT&T iPad data, with a Verizon unlimited iPhone plan - both have their better service areas.
When did you get your information? One of my friend get a 5s at the reseller cost with $70 discount (one of those mom and pop reseller).. Didn't reseller has to pay salary etc. to their stuff?
You mean Flash Storage, not RAM...and I don't know that you should take their word for that either.
The problem with your argument, is that it is rational... and there is no room for that in this discussion!
I do that sometimes....it happens when I log in and Safari is snappier....
Seriously....I sold my iPad 3 in the office 10 seconds after I sent the email, and picked up the Air....love the feel and lighter weight.
Like someone else said its genius Apple gets away with it, and in the end the joke is on the consumer, because they continue to buy it at those prices. Myself, I won't upgrade to a newer ipad until apple has 32gb as the base model, so I'll be waiting awhile.
Maybe you could bother enlightening us about why a 400% markup for LTE is reasonable instead of insulting people?
Economics 101: The price of a product is how much the market is willing to pay for it along a supply/demand curve.
Vote with your wallets.
Vote with your wallets.
heh heh, need to retake a refresher on the six grade reading class?
The distribution cost (BB, Walmart don't like to work for free
AAPL has a net profit margin of about 22% after expenses and R&D and wages etc etc etc
http://finance.yahoo.com/q/ks?s=AAPL+Key+Statistics
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But u also have to remember that Apple buys the individual items by the Millions!, so the price breakdown reflects what the consumer would have to pay for a replacement. Most likely they are paying pennies for a A7 chip!!
The article clearly states this, but you were such in hurry to post for having a chance to notice it