Just a Random Observation

Discussion in 'iPad' started by B.Chang, Aug 12, 2011.

  1. B.Chang macrumors member

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    #1
    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 . . .
     
  2. SteveAbootman macrumors 6502a

    SteveAbootman

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    #2
    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.
     
  3. appleguy123 macrumors 603

    appleguy123

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    #3
    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.
     
  4. AppleTech22 macrumors 6502

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    Nothing is sold at what the manufacturer charges, just simply business.
     
  5. boy-better-know macrumors 65816

    boy-better-know

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    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.
     
  6. Zcott macrumors 68020

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    #6
    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.
     
  7. B.Chang thread starter macrumors member

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    #7
    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.

    ----------

    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 :p
     
  8. appleguy123 macrumors 603

    appleguy123

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    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.
     
  9. B.Chang thread starter macrumors member

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    Did you not read this guys reply???


     
  10. appleguy123 macrumors 603

    appleguy123

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    That would be like trying to decide that books should only cost a few cents because ink and paper are cheap.
     
  11. AppleTech22 macrumors 6502

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    Ya it's just part of being a consumer
     
  12. B.Chang thread starter macrumors member

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    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 . . . :\

    ----------

    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 . . . :]
     
  13. boy-better-know macrumors 65816

    boy-better-know

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    #13

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