A couple of splits handled that nicely.I forget the dates, but it split twice 2-1.
Oh wait, edit. Original invested was $200. That's with the split adjustment.
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iPad Component Costs Estimated to Begin at $219.35
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Oh wait, edit. Original invested was $200. That's with the split adjustment.
DROP the wi-fi only model and keep 32Gb and 64Gb
Six SKUs are to many to carry ...
keep two simple SKUs and both with Wi-Fi and 3G
$599 - 32GB
$699 - 64GB.
Six SKUs are to many to carry ...
keep two simple SKUs and both with Wi-Fi and 3G
$599 - 32GB
$699 - 64GB.
What margins are you referencing? They don't appear to be gross margins or profit margins.
this is so naive. the component parts are the cheap bit!
i like how the A4 is pitched at costing $17 - did they take the cost of buying pa semi and divide it by the amount of ipads apple are hoping to sell????
come on!
i like how the A4 is pitched at costing $17 - did they take the cost of buying pa semi and divide it by the amount of ipads apple are hoping to sell????
come on!
You DON'T! this is a useless "estimate" that really means nothing. i seriously doubt that the touchscreen is only $80, not to mention the other intangibles that others have noted (R&D, QA, etc.) There is a lot more to bringing a product to market than the sum of the hardware components.
I'm sure Apple still makes a healthy profit, but these estimates really mean nothing. ppl should stop reacting as if these numbers are real.
Just the typical retail scheme of double or nothing. You also have to include the cost of advertising, paying for Apple stores to stay open and your friendly customer support representative telling you that you cannot call Apple anymore, it's been over 90 days since you bought our fragile product, please get lost or visit one of our retails stores 300 miles away from your place of residence.
Do you even know how to speak English properly? Or are you just drunk!?
Either
I was simply trying to say that there is more than hardware costs if comes to product estimation.
Is that make sense to you now?
According to the rumors, at least 4 years of R&D and Apple claims to make very little off of iTunes/App Store. iPhone OS existed, iPhone OS 3.2 did not and 4.0 could have a lot of new features. You are mistaking simple (in appearance) design with cheap design. HP makes cheap laptops, but their design is anything but simple (take one apart and you will see).
Never Happy
What a sham! Apple is ripping us off again!
BOO HOO
Guys, why so many negative ratings and comments? Are they not allowed to make a profit. Are they not allowed to make a great profit. The device is, in my opinion, priced well. And that is before it even takes a price reduction. Yes, first gen stuff always has issues, but compared to the issues I see in hardware offered by many opposition at even the 5th and 6th iteration, Apple just thrashes them.
Look, we get good materials, nice designs, great UI's, an excellent overall experience with tied in apps such as iTunes. If you don't like it. Just go and buy that cheap buggy plastic that keeps getting pushed on to us from other manufacturers and run the crap they give you. Sure, it will have 15 usb slots... 20 trillion gigs, but it will be as ugly as @#$%, crash often, break when put in a bag with books, and none of the apps will work 100% because it will have multithreading. Sorry guys, but programers are not perfect! Multithreading IS more difficult and people stuff it up all the time. I am sure you have read some of the issues the Nexus is having with crashing apps. Apps that crash the entire phone!? Have you read it? Or again you expect that from inferior crap and don't complain?
SO, I like the price. Go Apple. Make some profit, and then make some new hardware! Use that money to nail it!
--Steve
What a sham! Apple is ripping us off again!
BOO HOO
Guys, why so many negative ratings and comments? Are they not allowed to make a profit. Are they not allowed to make a great profit. The device is, in my opinion, priced well. And that is before it even takes a price reduction. Yes, first gen stuff always has issues, but compared to the issues I see in hardware offered by many opposition at even the 5th and 6th iteration, Apple just thrashes them.
Look, we get good materials, nice designs, great UI's, an excellent overall experience with tied in apps such as iTunes. If you don't like it. Just go and buy that cheap buggy plastic that keeps getting pushed on to us from other manufacturers and run the crap they give you. Sure, it will have 15 usb slots... 20 trillion gigs, but it will be as ugly as @#$%, crash often, break when put in a bag with books, and none of the apps will work 100% because it will have multithreading. Sorry guys, but programers are not perfect! Multithreading IS more difficult and people stuff it up all the time. I am sure you have read some of the issues the Nexus is having with crashing apps. Apps that crash the entire phone!? Have you read it? Or again you expect that from inferior crap and don't complain?
SO, I like the price. Go Apple. Make some profit, and then make some new hardware! Use that money to nail it!
--Steve
A couple of splits handled that nicely.
2 for 1 split - June 21st, 2000. $23 a share
2 for 1 split - Feb 28th, 2005. Around $40 a share...
Wait, Apple marks the iPad up *less* than the iPhone, so you want it to fail?
The 16GB iPhone 3GS costs $179 to make, but sells for $599.
334% markup (of the estimated component costs).
16GB iPad costs $229 to make, but sells for $499.
217% markup (of the estimated component costs).
Yes, it is just a parts list. And yes, the title of the article is "iPad Component Costs Estimated to Begin at $219.35".
I think once some people go out into the working world they'll come to appreciate working for a company that actually makes profit. Unless they are communist but then we'd all have cheap toilet paper and a 10 pound tablet computer that doesn't work but has a 2 year waiting list just so you can say you have it.
Why are there so many negatives in this story? Don't you WANT apple to make a profit? Oh, just not too big of one, I see.
"Now is not the time for profits."
B. Obama, January 28 2009
"Now is not the time for profits."
B. Obama, January 28 2009
Who cares how much the parts come to, Apple has never given the consumer a good deal, they have always charged through the roof. Its sexy, its shiny, heck they could have charged 2x or 3x more and the blind faithful would be lining up on release day to buy them like hot cakes. I have been guilty of this in the past also, just kinda gutted that after all this hype the carrot on the string this time is just a big ipod touch in a picture frame, lame for a company that prides itself on innovation
could be something to do with the so called "unbelievable" price , guess people did not think it meant and unbelievable profit
In addition to the OS tweaks that you consider minor, most of the included applications had major rewrites, no minor tweaks. Did you even watch the keynote?
I don't really understand the purpose of this information
Why is this something of interest to anyone who participates in a profit based society? I don't like the system any better than, well, anyone, but do I give a crap what they paid for components? Not really, as long as I can afford it, I don't care, and I don't have much (if any at times) a lot of disposable income. What does this information actually tell you? I suggest nothing other than the price of the components, and what is the value in that?
And would I have any real understanding of what the company's expenses are for other items, such as R&D, marketing, sales, G&A, distribution, channel programmes, partner programmes (other than downstream channel), etc.? Well, I actually have a good idea at least enough to list some of the items that would be an expense to an organisation like this, so I ask, why is this anything we should be interested in knowing? To whip everyone into a frenzy who doesn't understand either a product-based company's profit model or the entire (oppressive) system under which we all live?
FFS!
This company is in the business to make money. You've just shown nothing, other than the components cost a certain amount. You can speculate all you want, but you've shown nothing other than the cost of the components and invited comment.
Stupid rant on a stupid post, yes!
Why is this something of interest to anyone who participates in a profit based society? I don't like the system any better than, well, anyone, but do I give a crap what they paid for components? Not really, as long as I can afford it, I don't care, and I don't have much (if any at times) a lot of disposable income. What does this information actually tell you? I suggest nothing other than the price of the components, and what is the value in that?
And would I have any real understanding of what the company's expenses are for other items, such as R&D, marketing, sales, G&A, distribution, channel programmes, partner programmes (other than downstream channel), etc.? Well, I actually have a good idea at least enough to list some of the items that would be an expense to an organisation like this, so I ask, why is this anything we should be interested in knowing? To whip everyone into a frenzy who doesn't understand either a product-based company's profit model or the entire (oppressive) system under which we all live?
FFS!
This company is in the business to make money. You've just shown nothing, other than the components cost a certain amount. You can speculate all you want, but you've shown nothing other than the cost of the components and invited comment.
Stupid rant on a stupid post, yes!
I remember back when you actually would read about a company tearing an honest-to-goodness unit before telling you what the thing cost to build. Seems we're treading into some murky waters, guys.
I knew that $130 for a 3G chip was ridiculous. I have no problem with Apple wanting to make a profit, and I think the base price of $500 is actually pretty good. The $130 premium for 3G, when it's not costing them anywhere near that much, is a huge mistake. It's going to force a lot of people to wait, and some to opt for Wi-Fi only, which will make 3G less ubiquitous and fragment the market for developers. I don't imagine AT&T is happy about that either.
ALL models should have 3G, none Wi-Fi only, and the lineup should be:
16 GB 3G $500
32 GB 3G $600
64 GB 3G $700
Hey, they can set the price at whatever they want, but I think they'd sell a lot more at those prices. I understand they want to leave themselves a little room for price drops in the future though. After the first year, they could maybe get the costs down an additional $100-$150 per model. Can you imagine how many they'd sell at $350 each? They could actually do that right now and still make a profit if they wanted to. But, it is first generation hardware, not really a surprise, I'm mostly upset about the 3G part.
ALL models should have 3G, none Wi-Fi only, and the lineup should be:
16 GB 3G $500
32 GB 3G $600
64 GB 3G $700
Hey, they can set the price at whatever they want, but I think they'd sell a lot more at those prices. I understand they want to leave themselves a little room for price drops in the future though. After the first year, they could maybe get the costs down an additional $100-$150 per model. Can you imagine how many they'd sell at $350 each? They could actually do that right now and still make a profit if they wanted to. But, it is first generation hardware, not really a surprise, I'm mostly upset about the 3G part.
No, most of the included applications were major rewrites, not minor tweaks. Did you even watch the keynote?
What you are paying for is not the Pepsi in the cup. No, the more costly part is the rent on the space the Pepsi machine occupies. It might cost $100 per month per square foot. What you are paying for is the price retail space.
Back to the iPad. What do you think Apple paid to create the first iPad? I'm guessing an easy $100M. So if Apple sells a million iPads the enginering cost in each one is $100. There is also on-going engineering costs to suport the "rev 2" verion and address bug in the current version. Apple did not fire all the staff aftr the design was done. My gues is that the most expensive "part" in there is enginerring man hours