Is Google trying to COPY Apple with their tablet?

Discussion in 'iPad' started by GarytheiPhonema, Jan 5, 2012.

  1. GarytheiPhonema macrumors member

    GarytheiPhonema

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    #1
  2. Mac.World macrumors 68000

    Mac.World

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    It will fall under the Nexus flag, which hopefully means a pure Android experience. No custom manufacturer UI's overlaid on it. Samesung makes their Nexus branded phones now, and you still see other manufacturers selling Android based devices. This will just be more of the same.

    Although, this tablet will probably be built with very few features in order to complete with the Fire. Unfortunately for the Fire and this new tablet from Google, by the time that competition heats up, the iPad2 will have gone on sale for $299, killing both of those products off.
     
  3. ECUSnare macrumors regular

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    I don't see how their trying to copy Apple except for the phrase "of the highest quality". If anything, it looks like competition for the Kindle Fire and Blackberry Playbook lines. We all know how Android has been with quality. iPad will reign supreme again over this tablet.
     
  4. poloponies macrumors 68030

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    As well as killing off Apple's profitability.
     
  5. Navdakilla macrumors 65816

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    don't worry, it won't do any damage to the iPad sales
     
  6. locust76 macrumors 6502a

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    Don't worry, the iPad's BOM isn't over $299... they'll still make a good profit.
     
  7. poloponies macrumors 68030

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    So a "good profit" simply means you're not selling below cost?
     
  8. Mac.World macrumors 68000

    Mac.World

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    Outdated products always get a price drop with Apple. you assume Apple is losing profitability, because they are not making AS MUCH money as when the product was new.
     
  9. MisterMe macrumors G4

    MisterMe

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    Apple's margins are 30%-40%. It has complete control over the design and engineering of its products. It generates and maintains its margins by developing a complete understanding of the manufacturing process from raw materials to transportation of finished products.
     
  10. *LTD*, Jan 5, 2012
    Last edited: Jan 5, 2012

    *LTD* macrumors G4

    *LTD*

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    Google thinking about vertical integration (or moving away from from the universal-licensing mess)? Seems they're learning about User Experience for once. Will they get it right?
     
  11. poloponies macrumors 68030

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    No kidding. SO if they're earning 30-40% at $499 common sense and math dictate that they'd have to drop ALL costs (not just materials) by a huge margin to sell at $299. Not bloody likely. $399 as a clearance measure, sure. But that's about it.
     
  12. Mac.World macrumors 68000

    Mac.World

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    Not quite correct. All the tooling and R&D costs, plus computer assembly programming is done for the iPad 2. They have left over inventory that needs to be used up. Only costs incurred on defunct iPad 2 parts are human assembly and distribution. Cost for producing iPad 2's now are significantly less than at start up. Remember, Apple buys in bulk, pays ahead of time and recoups initial costs at the begining of a product cycle. Trust me, Apple still makes a ton on each iPad 2, even at a drop down to $299 or $350 or whatever price they choose.
     
  13. corvus32 macrumors 6502a

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    I doubt it will harm their partners pocketbook because none of them actually make all that much profit from selling Android devices anyway. Some are even selling their devices for a loss. Amazon loses money on every Fire that's sold, but they attempt to make it up by tying the device to their own content catalog. Google would gladly do the same with a Nexus tablet if it generated ten times it's cost in mobile ad revenue.
     
  14. joneill55 macrumors 6502

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    Unlikely :)
     
  15. CapnJackGig macrumors 6502a

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    Silly Apple fanboy. Amazon's tablet isn't a huge success just because of price. It also has direct access to the best content stores. Kindle store destroys iBooks, and Apple has zero answer for Amazon's video streaming service. The ability to get free books (lending library) is something Apple doesnt match either. So let's drop this idiotic fanboy crap and be realistic. Hopefully Amazon's success makes Apple do more than drop the price.
     
  16. MisterMe macrumors G4

    MisterMe

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    If Apple sold products at an initially high price to recoup costs and then dropped its prices later, then you would be on solid ground. However, that is not how Apple does business. This is not to say that Apple never drops prices, but it usually does not. We know that Apple buys in bulk but its does much more than buy in bulk. The cost amortization is baked into the cake so that Apple can sell product at a price that returns its expected margin over the life of the product.

    Fixating on $299 or some other loss-leader price is emphasis misplaced. Apple has sucked every gram of excess out of its costs. There is no way for its competitors to compete with it on price and stay in business.
     
  17. techkidd4400 macrumors regular

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    #17
    If Google builds a 7" Android tablet to compete against the Kindle Fire and whatever 7" tablets Windows 8 is shoved onto, then those devices will probably compete against each other, rather than the iPad. I have a kindle fire and I think it's great for e-books and is easy to carry around, these 7" devices cannot begin to capture the feature set of the ipad. I can actually type my resume on my ipad. I would never try that on the kindle fire.
     
  18. poloponies macrumors 68030

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    Ya got that right. It's a moderate success but only because of the price. It's an incomplete device made a little less so by integration with Amazon's content. At $299 sales would have dropped a lot. The $199 price point is what got all the buzz.
     
  19. Mac.World macrumors 68000

    Mac.World

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    #19
    The iPad 2 is at the end of its life cycle. Price drops are expected and have been seen in the past in other products.
     
  20. poloponies macrumors 68030

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    You've done a nice job of explaining why Apple can sell the iPad at $499 instead of a higher starting point, but at a BOM of $325 (admittedly for the 32GB 3G, so let's discount it $75 for the base model) there's no way to make $299 a viable price point. They'd have to get the entire cost of manufacture (not just materials, but assembly, shipping and returns) under $200. Apple negotiates well, but they don't perform miracles.
     
  21. Mac.World macrumors 68000

    Mac.World

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    I said $299 or $350. Both numbers are just swags on my part. I have no idea what price Apple will eventually go with, but if they wish to take away from Kindle and Google, they will need to be between those two numbers.
     
  22. poloponies macrumors 68030

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    Apple's been doing a fine job of maintaining interest in their products and they've always had to deal with low-ball competition. They didn't bite at the $399 desktop market or the $599 laptop market. The tablet market is still in its infancy and Apple can maintain and grow sales well into the future as long as they stay focused and provide good products. There's plenty of room at the low end for companies who want to sell at a loss or at minimal profit to get asses in the seats.
     
  23. Mac.World macrumors 68000

    Mac.World

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    I agree, but we are specifically talking about the ipad 2 eating up the low end tablets AFTER the release of the ipad 3. This is one reason why you still see the iphone 3gs and iPhone 4 still being listed as top sellers even though they have reached end of product life status (albeit under slightly different rules, due to subsidies.)
     
  24. poloponies macrumors 68030

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    Math is totally different on those. BOM on the 3GS when it was new was about $180. Much, much less now (2-1/2 years later). They get about $350 a pop from the wireless companies so it's a highly profitable item, not a loss-leader. They simply can't do that with the iPad2, so we'll see clearance pricing, and maybe a $399 point, but not lower.
     
  25. Batavian macrumors 6502

    Batavian

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