Just a Random Observation

[B.Chang]

So unfortunately the screen on my iPad 2 began to crack when I was traveling and it eventually went across the entire screen by the time I was able to go in to get it replaced.

Apple was very gracious and I was able to get it replaced for free, but I couldn't help but notice that the replacement would have only cost $375 . . . I was wondering if this is what it actually cost to manufacture what I paid more than $700 for . . .

 

[SteveAbootman]

The pane of glass is not worth 375 dollars. The labor that goes into having to dissemble an iPad, remove the current display, and hook up another one is probably why it costs that much. Plus, you paying 700 dollars signifies you bought an iPad with increased storage and potentially 3g. Memory and (maybe a 3g radio) are in no way effected by the glass. You could have bought one for $499 and the glass would be the same. Glad you got it replaced for free though.

 

[appleguy123]

The pane of glass is not worth 375 dollars. The labor that goes into having to dissemble an iPad, remove the current display, and hook up another one is probably why it costs that much. Plus, you paying 700 dollars signifies you bought an iPad with increased storage and potentially 3g. Memory and (maybe a 3g radio) are in no way effected by the glass. You could have bought one for $499 and the glass would be the same. Glad you got it replaced for free though.

Replacement means they give you another unit, not repair it.

Op, they take your old iPad and sell it as a refurb(or give it to someone else as a replacement(, that is why replacements are cheaper than new units.

 

[AppleTech22]

Nothing is sold at what the manufacturer charges, just simply business.

 

[boy-better-know]

On the subject, does anyone know what the production cost of each unit is?
I know games consoles are often sold below unit cost because they make money back on game sales. Obviously apple wouldnt do this, just curious.

 

[Zcott]

On the subject, does anyone know what the production cost of each unit is?
I know games consoles are often sold above unit cost because they make money back on game sales. Obviously apple wouldnt do this, just curious.

PCPro says the iPad 2 costs $326 in parts:

http://www.pcpro.co.uk/news/365965/ipad-2-costs-326-in-parts

However, this doesn't take into account things like shipping costs, R&D costs, packaging costs, etc.

 

[B.Chang]

Nothing is sold at what the manufacturer charges, just simply business.

Yes I'm aware, but I didn't realize that it won't be at the manufacturer cost, but I didn't realize that they would charge almost twice the amount of production .

I'm not saying I think it's bad business practice. Obviously the price point is reasonable enough since people (including myself) still purchase them. I was just surprised that it cost them so much less.

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The pane of glass is not worth 375 dollars. The labor that goes into having to dissemble an iPad, remove the current display, and hook up another one is probably why it costs that much. Plus, you paying 700 dollars signifies you bought an iPad with increased storage and potentially 3g. Memory and (maybe a 3g radio) are in no way effected by the glass. You could have bought one for $499 and the glass would be the same. Glad you got it replaced for free though.

Hmm you may have a point. I didn't think that they would take my unit and just replace the glass and potentially use that as a replacement for future repairs

 

[appleguy123]

Yes I'm aware, but I didn't realize that it won't be at the manufacturer cost, but I didn't realize that they would charge almost twice the amount of production .

I'm not saying I think it's bad business practice. Obviously the price point is reasonable enough since people (including myself) still purchase them. I was just surprised that it cost them so much less.

Op, did you not read? The replacement cost means they take your iPad. That cost is the cost of production-the cost they will recoup with your iPad.

 

[B.Chang]

Op, did you not read? The replacement cost means they take your iPad. That cost is the cost of production-the cost they will recoup with your iPad.

Did you not read this guys reply???

PCPro says the iPad 2 costs $326 in parts:

http://www.pcpro.co.uk/news/365965/ipad-2-costs-326-in-parts

However, this doesn't take into account things like shipping costs, R&D costs, packaging costs, etc.

 

[appleguy123]

Did you not read this guys reply???

That would be like trying to decide that books should only cost a few cents because ink and paper are cheap.

 

[AppleTech22]

Yes I'm aware, but I didn't realize that it won't be at the manufacturer cost, but I didn't realize that they would charge almost twice the amount of production .

I'm not saying I think it's bad business practice. Obviously the price point is reasonable enough since people (including myself) still purchase them. I was just surprised that it cost them so much less.

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Hmm you may have a point. I didn't think that they would take my unit and just replace the glass and potentially use that as a replacement for future repairs

Ya it's just part of being a consumer

 

[B.Chang]

That would be like trying to decide that books should only cost a few cents because ink and paper are cheap.

I'm sorry; do you have some issue with me? If you read the article you can clearly see that the difference in parts between the original and a 32 GB 3G model is $6 . . . from $320 to $326.

The price they are selling is a difference of $230 from $499 to $729 . . .

I don't see how your books analogy works here . . . :\

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Ya it's just part of being a consumer

Yep! I surely can't create iPads or anything as well built on my own, so that is economics :]

Just thought it was an interesting revelation and wanted to share . . . :]

 

[boy-better-know]

PCPro says the iPad 2 costs $326 in parts:

http://www.pcpro.co.uk/news/365965/ipad-2-costs-326-in-parts

However, this doesn't take into account things like shipping costs, R&D costs, packaging costs, etc.

Thanks for the link. Some interesting stuff on there.