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How much less?

And while the west coast of the US a direct sea route from China, the east coast is a greater distance away than the UK.

Going by land from west coast US to east coast US does not require travelling across the borders of multiple countries. US States are explicitly barred from charging fees on shipment passing through from one US State to another, not so for the countries between the UK and China.
 
Going by land from west coast US to east coast US does not require travelling across the borders of multiple countries. US States are explicitly barred from charging fees on shipment passing through from one US State to another, not so for the countries between the UK and China.

But how much less does it cost?
 
But how much less does it cost?

Just checked with UPS. Taiwan <-> UK for 13kg is £219.85, Taiwan <-> US (any of 48 continental states) $187.60usd, which is £113.37. So it costs a little under twice as much. And you don't get much benefit from economy of scale in shipping and freight.
 
You can't be seriously comparing commercial container freight with UPS for a single item?

We buy metal fittings from China and it costs less than £30K per container load including freight (around 15 tonnes), delivered to our works. We've also lost work with some of our customers who are buying finished pressings from China for not far off the same price we are paying for the raw materials (around £600 per tonne).

Using your ridiculous example it would be over £250,000 just for the freight for one container load. :eek:
 
lol @ the people getting upset at 5% being referred to as a "surge".

Do a little math, people. That's a 25% increase in market share. That's not a surge? Certainly is in my book, especially in business. Swings like that are not common. Most companies would be absolutely ecstatic to see their market share increase by 25%.

If I went door to door selling candy bars in my neighborhood of 100 homes in 2008 and sold 4 candy bars (let's say 1 bar per house) and then in 2009 I sold 5...a 25% increase (4 vs 5)...I still would NOT be jumping for joy because out of 100 homes only 4 bought in 2008 and 5 bought in 2009. Still a joke. Why aren't the other 95 and 96 homes buying my product?

I get the math...and understood it last night when I made my post on this thread...but there are times you have to see beyond the math and look at the reality and practicality.

-Eric
 
You can't be seriously comparing commercial container freight with UPS for a single item?

We buy metal fittings from China and it costs less than £30K per container load including freight (around 15 tonnes), delivered to our works. We've also lost work with some of our customers who are buying finished pressings from China for not far off the same price we are paying for the raw materials (around £600 per tonne).

Using your ridiculous example it would be over £250,000 just for the freight for one container load. :eek:

Er... No, I was taking an easy example that could provide quick figures that demonstrated the difference in rates applied to the different routes. The cost for shipping a small item Taiwan -> US is almost half that of Taiwan -> UK, and economics of scale only stretch so far.

Also...

A) Electronics components are not metal fittings. They need to be shipped in a fundamentally different way. It's not just a matter of filling a box with them to the right weight, then throwing them in a container. Electrical components have to be specially packed, and properly handled.

B) Weight is less important than Volume for bulk shipping.

C) Yes shipping works on a scale based on base-cost, plus per-item cost, plus mark-up. I wasn't suggesting it was going to be a linear scale-up, you invented that yourself to try and make me look wrong.
 
If I went door to door selling candy bars in my neighborhood of 100 homes in 2008 and sold 4 candy bars (let's say 1 bar per house) and then in 2009 I sold 5...a 25% increase (4 vs 5)...I still would NOT be jumping for joy because out of 100 homes only 4 bought in 2008 and 5 bought in 2009. Still a joke. Why aren't the other 95 and 96 homes buying my product?

I get the math...and understood it last night when I made my post on this thread...but there are times you have to see beyond the math and look at the reality and practicality.

-Eric

Let's say I'm selling boxes of premium chocolates on the same street.

Let's say you're still selling chocolate bars.

You make 10 pence profit on each chocolate bar you sell.

I make 2 pounds profit on each box of premium chocolates.

You increase your share to a massive 50% of the market, selling one bar to 50 homes.

I only manage to increase my share to 5% of the market,
selling one box to 5 homes.

Your increase makes your profits go up to 50 pence.

While my profits surge to 10 pounds.
 
Let's say I'm selling boxes of premium chocolates on the same street.

Let's say you're still selling chocolate bars.

You make 10 pence profit on each chocolate bar you sell.

I make 2 pounds profit on each box of premium chocolates.

You increase your share to a massive 50% of the market, selling one bar to 50 homes.

I only manage to increase my share to 5% of the market,
selling one box to 5 homes.

Your increase makes your profits go up to 50 pence.

While my profits surge to 10 pounds.


And? This article/headline has nothing to do with PROFITS...all to do with MARKET SHARE.

Your math is fine and correct...but 2 totally different principles (profit vs. marketshare).

-Eric
 
Let's say I'm selling boxes of premium chocolates on the same street.

Let's say you're still selling chocolate bars.

You make 10 pence profit on each chocolate bar you sell.

I make 2 pounds profit on each box of premium chocolates.

You increase your share to a massive 50% of the market, selling one bar to 50 homes.

I only manage to increase my share to 5% of the market,
selling one box to 5 homes.

Your increase makes your profits go up to 50 pence.

While my profits surge to 10 pounds.



So what do you think benefits the consumer more.. market share or profits of a company? I would venture market share as with more people using a product there will be a much wider range of software programmed for it.
 
Let's say I'm selling boxes of premium chocolates on the same street.

Let's say you're still selling chocolate bars.

You make 10 pence profit on each chocolate bar you sell.

I make 2 pounds profit on each box of premium chocolates.

You increase your share to a massive 50% of the market, selling one bar to 50 homes.

I only manage to increase my share to 5% of the market,
selling one box to 5 homes.

Your increase makes your profits go up to 50 pence.

While my profits surge to 10 pounds.


And then tastes change and because you only have the one product you're screwed. I on the other hand have diversified enough to survive and still make a good living.

Different market strategies have different risks.
 
Why not? They'll go to London for a night out - look at all those Oxford-London coach services that run 24/7 - although I would agree that a store in Oxford would make sense.

Can't really see someone entrusting their brand spanking new iMac to the vagaries of the coach driver loading it into the luggage compartment, somehow, or having to lug it to the coach stop or back home after....:p

There is a store in Oxford that sells Apple stuff. Look down Broad Street for the 'Apple Premium Reseller' sign.

True, but having their own store would help raise the brand awareness a lot, and make it easier for people in berkshire & Oxfordshire (even Gloucestershire too!) to get their hands on Apple gear

The main reason, I think, why Oxford doesn't yet have an Apple Store is lack of a suitable space in the right area. There's only so much 'modern retail' space in central Oxford, and it's a very desirable market place. I think Apple UK would love to have a large store in Westgate or Claringdon, or even Templars out in Cowley. But can't get a lease on a big enough section.

Good points. Imagine if they could take the place of the Sports store in the Westgate. That would be ideal for an Apple store!
 
If I went door to door selling candy bars in my neighborhood of 100 homes in 2008 and sold 4 candy bars (let's say 1 bar per house) and then in 2009 I sold 5...a 25% increase (4 vs 5)...I still would NOT be jumping for joy because out of 100 homes only 4 bought in 2008 and 5 bought in 2009. Still a joke. Why aren't the other 95 and 96 homes buying my product?

If you had 4% market share in the computer business, and grow it to 5%, and that is an increase of 40,000 computers adding say £50million to your revenue and £10million to your net profit, then you _can_ jump for joy. Especially if your _increase_ in profit is more than everyone else total profit.
 
So what do you think benefits the consumer more.. market share or profits of a company? I would venture market share as with more people using a product there will be a much wider range of software programmed for it.

Market share.

It is not only the number of products that exist for a platform, is is also availability.
Apple products and accessories are only found at a few special retail stores and depending on where you live, you could even rely on mail order exclusively while you can get "designed for Windows" products and services everywhere.

Market share also has psychological consequences: The old "no one ever got fired for buying IBM". While Apple going out of business is very unlikely in foreseeable future many people still prefer to chose something just because it is "the standard" - it gives them some feeling of security.

I don't think this is a problem for Apple, they earn enough money (more than most other computer / electronics companies do). But for many users it is a problem. A lot of products are only available on the mac when you run Windows on it.

Christian
 
Can't really see someone entrusting their brand spanking new iMac to the vagaries of the coach driver loading it into the luggage compartment,

And that will be any worse than the UPS/FedEx/ParcelFarce driver if you buy online?

True, but having their own store would help raise the brand awareness a lot, and make it easier for people in berkshire & Oxfordshire (even Gloucestershire too!) to get their hands on Apple gear

The good folk in Gloucs have the Apple Store in Bristol (Cabot Circus) and there is another opening/opened at Cribbs Causeway which is even better as it's right next to the M5.
 
Considering how much apple's prices have risen in the UK since the pound went down the swanny, this is pretty amazing. The current quad-core mac pro costs more than an octo did almost 2 years ago and after incremental price drops with every imac release since I paid £1200 for mine almost 5 years ago, an equivalent model now costs £1350, having jumped suddenly about a year ago. I was looking into buying a fleet of 10 2.66 ghz QC mac pro second-hand about a year ago for £1000. They now go for more like £1500 on ebay and I'm kicking myself.

I have seen macs' mindshare grow so much in that time, I would have thought it was slowing down rather than picking up, especially since they now cost so much more than they used to. I think there's a lot more to be said for the iPhone halo effect than the iPod halo effect since it runs a proper OS.
 
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