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trip1ex

macrumors 68030
Jan 10, 2008
2,889
1,422
I probably have alot more to learn in this life, but not from you on this subject. iSuppli used to regularly estimate products price costs within a $1 for products we used to make for HP, Dell & Apple, so I'm real familiar with the isuppli estimates vs real world cost deltas. Just FYI, if we were swapping out the Flash vs Apple, the delta is $4 at todays prices in 100K quantity, so I am guessing Apple as a much bigger parts buyer can beat that number.


Manufacturing amount is less then $10 for any of the iOS products, as was pointed out earlier, and there isnt alot of R&D for a product that is a shrunk copy of a currently delivered product. Apple makes a whole lot more then 2% of every single product they make, we are looking at 40% or so on the unit here if they make it 16 GB, are you really arguing that instead they should provide a sub-standard product at 8 GB. Also one last reason to not make a 8 GB iPad Mini. Its possible to up the memory on an iPad or an iPhone, it'll cost you over $100, but you can turn a 16 GB iPad to a 64 GB iPad. However it carries risks so few are going to do it so save $50 or so bucks after you pay shipping both ways etc. HOWEVER. If they come out with an 8 GB device, and charge $100 for each doubling so we now have $300 delta between the smallest and a 64 GB device, I expect a thriving memory update effort as those $250 8 GB units become 64 GB units all without another dime going to Apple.



And again I am pointing out to you that if Apple charges $100 for an extra 8 GB of storage, the press, the blogs and twitter will tear them up and down. There is plenty of money to be made selling a 16 GB iPad Mini at $250, and more profit at the bigger sizes, and lots of extra money to be made on the 32 GB and 64 GB models and even more on the cell models. Delivering a product that many will fill up and be angry about the size is not a clever plan and Tim is a clever guy.

? Tim is the same guy that sold the 8gb Touch and the 64gb MBA and the 2gb RAM MBA and the 512mb Macbook and the $1200 iMac with integrated graphics. All when those specs weren't desirable.

No one is arguing otherwise. That the specs are desirable. No one is saying that $100 for 8gb flash isn't overpriced.

But you don't get it. Apple does this sort of thing. Has done it. And will continue to do it. Nothing says otherwise.

So saying they won't because it isn't desirable is absurd. Saying they won't because they will get bad press is absurd. Just look at their past pricing and specs on low end models. Look at Maps. Look at Antenna gate. Using your argument Cook would never release Maps because it would get bad press. Yet he did. Apple gets bad press all the time for overcharging for more memory and storage. What is this bad press anyway? That Apple is over priced? OR too expensive? That is what the press says now and has said for decades.

Yes Apple makes huge profit margins. No one said otherwise. But the low end models make less than desired while the hi-end models make up for it. All in the name of getting to their desired hi-profit margin model. That's why they charge alot for the extra RAM and storage.

So what are we arguing about?
 
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hovscorpion12

macrumors 68030
Sep 12, 2011
2,603
2,553
USA
No such thing as 8GB

Apple will not release an iPad or any other future product at 8GB. the starting GB is 16 followed by 32 then 64GB. 8GB will not store anything.
 

zephyrnoid

macrumors 6502
Jan 12, 2008
255
0
Geneva Switzerland
If Moore's Law has taught us anything, it's that...
You can never have too much Processing power or Memory. I'll add that broadband can never be too wide in a ubiquitous/ pervasive computing world.
 

Tigger11

macrumors 6502a
Jul 2, 2009
536
394
Rocket City, USA
Right now on the Apple store the only iPhone 4 size available is 8GB. Clearly they don't mind doing this as a rock-bottom low budget option.

Just because they sell a two generation old phone with 8 GB as the free with contract phone doesnt mean that they are going to do a Tablet (which needs more space) as an 8 GB device.
 

JSalig

macrumors 6502
Oct 30, 2010
272
3
Anyone contemplating getting an 8GB tablet might want to consider whether or not they can do without major iOS updates because iOS 6 may likely be the end of the road. It could be done but some tough decisions would have to be made as far as space management goes.

Luckily Apple will save these people from themselves.
 
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gnasher729

Suspended
Nov 25, 2005
17,980
5,565
It still bothers me that there is such a difference in profit margin between the 16 GB and 64 GB versions.... Assuming someone bought an Unlocked iPhone 5, Apple would make:

xxx

I am okay with them pulling that type of profit...

I won't even post your rubbish numbers again. The difference between retail price and cost of parts is not profit. :mad:
 

ActionableMango

macrumors G3
Sep 21, 2010
9,612
6,907
Just because they sell a two generation old phone with 8 GB as the free with contract phone doesnt mean that they are going to do a Tablet (which needs more space) as an 8 GB device.

I didn't say they would, so don't put me on that side. I was responding to a specific quote "No such thing as 8GB", and pointed out that there is such thing. That's all.

Personally, I don't think they'll do an 8GB tablet either. Heck, iOS6 + default apps alone are about 2.2GB installed.
 

James twinli

macrumors newbie
Sep 18, 2012
29
0
No, it is not sufficient . Actually I had an iPad mini 8GB and I used its complete memory with-in a month. So, I sold it. and now I have iPad mini 64GB.
 

kaielement

macrumors 65816
Dec 16, 2010
1,242
74
I have an iPod classic 160gb. No need for storage. I don't store more then a gig or two of music on my iPhone or iPad and only store one or two movies on the iPad and deleat them once watched. But every one is different so it's nice that Apple offers choices.
 

Spectrum Abuser

macrumors 65816
Aug 27, 2011
1,377
48
$5 is alot of profit on a $250 item. IT's 2%. Alot of companies have profit margins of only a couple percent if they make any money.

You've got a lot to learn. If companies don't make money they don't stay in business. And if you rely on product sales for a revenue source 2% is absolutely terrible. I wouldn't produce a product if it were to basically only cover the costs of manufacturing it.
 

jigzaw

macrumors 6502a
Oct 12, 2012
556
431
Apple is in the dark ages with regards to memory. There is no reason that the top of the line phone/iPad is still only 64 gigs and costs $200 more than the 16 gig version. Memory is dirt cheap. I can go to Frys and pick up a 64-gig thumb drive for $30.

It strikes me as very odd that the distinguishing feature between cheaper and premium models is a modest difference in gigs of memory. Memory is just not that expensive. I could see screen resolution being a factor or chip speed or pre-loaded professional-grade apps. But memory?

There should only be one model of iPhone and iPad, each with 300 gigs of memory. Find a price that's somewhere between what they currently charge for the 16 and the 32. That would be top-of-the-line and would be a fantastic rebuttal to all the "but there's no expansion port" arguments.
 

Want300

macrumors 65816
Oct 12, 2011
1,194
2
St. Louis, MO
I won't even post your rubbish numbers again. The difference between retail price and cost of parts is not profit. :mad:

Im not stupid, I know there is R&D, marketing, etc...

If you read my post, I was commenting about the difference in the margin between the capacities. Because they are charging $100 for the additional storage space. That actually only costs $10 or so.

If they start the iPad Mini with 8 GB for $250, and the 16 GB version for $350... That would be even worse... paying $100 for an addition 8 GB?!?

It is amazing, it seems the only way to not deal with comments like yours, is either to not post anything at all, or write an essay with every post making sure to cover every angle.
 

RedRaven571

macrumors 65816
Mar 13, 2009
1,128
114
Pennsylvania
I'm with you there. 2013 will be last year Apple will be able to not have a card slot on the iOS devices, after that they will have to address cards or lose a huge chunk of the tablet market.

I have no idea why Apple has not provided a SD slot for extra storage, other than to 'force' purchasers to buy larger internal storage at outrageous prices....

----------

If they start the iPad Mini with 8 GB for $250, and the 16 GB version for $350... That would be even worse... paying $100 for an addition 8 GB?!?

They already have goofy prices for storage upgrades, current iPad prices (wi-fi only):

16GB - $499
32GB - $599
64GB - $699

First additional 16GB costs $100, the next 32GB costs ...... $100 :confused:
 

jimmirehman

macrumors 6502a
Sep 14, 2012
504
352
I'm strongly considering buying a new iPad mini, but I am also cheap, so I'm wondering whether or not 8GB is sufficient capacity to use the device normally. I figure if I do any documents, photos, or music can be stored in cloud services I already use. So I think the issue is whether or not 8GB would be limiting at all in terms of the apps I could use...Would it be a ridiculous number of apps to fill 8GB or can that be filled up pretty quickly with apps?

8Gbs means only 6.9GB of actual useable space, which is absolutely inadequate. I had hoped with apple no longer offering an 8GB nano and finally moving the ipod to 16GB base models AND with the sucessful sales of past generation iphones, Apple may have finally run out of an obvious overstock of 8GB chips (someone hit too many zero's when they placed the order). but it looks like the 8GB iPad Mini will suffer with the remaing 8GB chips, hopefully for only a year though. 16GB is really the minimum these days.
 

mwulf67

macrumors regular
Mar 10, 2011
158
0
I don't know what Apple will or won't do...I only know what I will or won't do...

And what I won't do is buy any devise with only 8 GB and I won't pay $100 for an extra 8GB....

I am glad Apple is making a mini ipad, but if these rumored specs and prices are true, they'll have missed the mark with this educated consumer...

If that's the case, what I will do is buy a couple of Nexus 7s....
 

andrewnguyener

macrumors member
Mar 25, 2012
66
0
I think that 8GB is great. I barely use that much on my iPad 3 16GB. I'm glad Apple will make one with 8GB to present a lower price point.
 

TedM

macrumors 6502
Sep 19, 2012
356
2
California
if you put media on it, it will probably fill up rather quickly. Any videos or music tend to take up a lot of space.
 

BluePhoenixRa

macrumors regular
May 19, 2012
216
3
About 8/10 people use less than 2GB on their iPhones, I'm sure an 8GB iPad would be fine for them. I work in a phone store, everyone wants an iPhone but a majority don't know why ;)

That is horrible math right there. So basically you're saying majority of the iPhone owners have no idea what the heck they have? Nice joke.

My friend who knows nothing about computers and tech in general has less than 500MB on her phone from picture and apps.

8/10 people you know probably doesn't use more than 2GB, but not the whole world. I will agree that a lot of people don't know what they have on their hands. But not 8/10.
 

mantan

macrumors 68000
Nov 2, 2009
1,743
1,041
DFW
I fully expect them to release an 8GB model for $249, possibly $299 - because that's the arrogant crap Apple does. They'll give you just enough to be useless hopefully pushing you to a bigger model.

Although with the new Touch, they even stopped that charade and just forced everybody into a 32 gig model. (A $199 16 model would have been fantastic...but nah, didn't happen.)

Memory prices are dirt cheap. Apple probably could have made a 32 gig base model iPhone for $199 and got the same profit per unit as the iPhone 4....but they aren't going to leave that cash on the table. As a consumer I hate it. From a logic standpoint, I don't blame them. Their goal is to maximize the money they make for their shareholders. Especially when people get a warm and fuzzy feeling when they hear how much profit Apple makes. When they quarterly statements on MacRumors, people fall all over themselves fawning. Somehow I don't think they share the same excitement when Exxon or GE make big profits.

Rumors are Nexus is already planning to introduce a 32 gig model at the $299 price point and make their 16 gig model the $199 version.

In most rational universes a $299 8 gig mini would be DOA. But it's Apple...and people will line up to get it.

And as any parent who's bought their kid an 8 gig "free on contract" iPhone will tell you - that space gets eaten up in a heartbeat.

I would hope and dream that Apple would release the lowest end model at 16 gig for $249-$299 (who am I kidding, it's Apple, it'll be $299)....but if they can't do a 16 gig model for under 3 bills, I'll buy the Nexus the second the keynote is over.
 
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James twinli

macrumors newbie
Sep 18, 2012
29
0
we are planning on playing games and using a variety of apps the I would go with at least the 16gb. It's always nice to have a little wiggle room just in case
 

KandyKane

macrumors 6502
Mar 23, 2009
370
60
Australia
That is horrible math right there. So basically you're saying majority of the iPhone owners have no idea what the heck they have? Nice joke.

My friend who knows nothing about computers and tech in general has less than 500MB on her phone from picture and apps.

8/10 people you know probably doesn't use more than 2GB, but not the whole world. I will agree that a lot of people don't know what they have on their hands. But not 8/10.
I said 8/10 people don't use more than 2GB, not 8/10 people don't know what phone they have. There is a difference there.

When you work in a phone store and actually deal with what people buy, you can make your own statistics. I don't work in an Apple store and the store I'm in is an 'affluent' area, it could be the demographic but that's my experience.
These aren't people I know, these are just general people.
Yes, a lot of people don't know what phone they have, just that they got it 'free' on their last plan or that they're paying $x for it.

In saying that, there are people who do use more and know what capacity they want and don't need to be checked, but those people have been taken into account. Early adopters generally go for bigger sizes.
 
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