Remind me of McDonald french fries which only cost like 22 cent to make and sell over $3 bucks. lol
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New iPod Shuffle Contains $22 Worth of Parts
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Why is everyone so defensive? The article isn't critical of Apple or the Shuffle, they state that the Shuffle margin is actually likely less than other iPods.
iSuppli always does these breakdowns for major electronics devices. It goes without saying they are strictly estimating cost of goods sold, which excludes fixed costs such as development, marketing, etc.
iSuppli always does these breakdowns for major electronics devices. It goes without saying they are strictly estimating cost of goods sold, which excludes fixed costs such as development, marketing, etc.
Page 2, please ?!
Hey.. your tacky-losy Christian Audigier T-Shirt contains $1 worth of Cotton !
Still... it sells for $150 !
Macrumors is pretty boring lately.. iPhone news, more iPhone news.. iPhone.. and .. iPhone !
Can't wait to see only a minor announcement @ WWDC !!!
Hey.. your tacky-losy Christian Audigier T-Shirt contains $1 worth of Cotton !
Still... it sells for $150 !
Macrumors is pretty boring lately.. iPhone news, more iPhone news.. iPhone.. and .. iPhone !
Can't wait to see only a minor announcement @ WWDC !!!
... and the fact that there Italian Granite Floors are made from a mine purchased by Apple just for that.
correct me if I'm wrong but
Surely the income they make from all of the Shuffles they sell can't be that high compared to nanos, for example. So they have to raise the price to make the amount of profit that they make worth it to carry on producing it. So either they raise profit margins or there is no iPod shuffle. Sadly that's the way Apple and most companies are.
Surely the income they make from all of the Shuffles they sell can't be that high compared to nanos, for example. So they have to raise the price to make the amount of profit that they make worth it to carry on producing it. So either they raise profit margins or there is no iPod shuffle. Sadly that's the way Apple and most companies are.
Actually to make a business reliable you need at least 50% proffit if not more.
iSuppli is ok in making the aproximate pricing, now, apple make their proffit in being massive production.
Is not only what Apple has to pay in advertisement, locations, salaries and all that. A huge chunk is spent in reseraching, for example: how many ipods where created as a final product just for testing? is like crashing several lamborgini murcielagos just for crash test.
Apple proffit is in the volume, that is why the iPhone is such good source of income because there are millions out there, more than Apple computers.
For example, Philips just closed the WOWvx 3D display department, they were making 400% in proffit per screen, I mean, the retail price was $8000 (for resellers) for a 42" LCD screen with a lenticular film on it.
They closed the department because they made no proffit. So, a % is not good if there is not a mass consuption, that is whya huge amount of the proffit goes to advertisment.
iSuppli is ok in making the aproximate pricing, now, apple make their proffit in being massive production.
Is not only what Apple has to pay in advertisement, locations, salaries and all that. A huge chunk is spent in reseraching, for example: how many ipods where created as a final product just for testing? is like crashing several lamborgini murcielagos just for crash test.
Apple proffit is in the volume, that is why the iPhone is such good source of income because there are millions out there, more than Apple computers.
For example, Philips just closed the WOWvx 3D display department, they were making 400% in proffit per screen, I mean, the retail price was $8000 (for resellers) for a 42" LCD screen with a lenticular film on it.
They closed the department because they made no proffit. So, a % is not good if there is not a mass consuption, that is whya huge amount of the proffit goes to advertisment.
as they state there is alot more cost involved than just $22 in parts many of you have stated that as well
I still find it interesting that apple is pushing the envelope on making things smaller and powerful and i do find the research companies like iSuppli do as it provides us with great information and converstaion.
I still find it interesting that apple is pushing the envelope on making things smaller and powerful and i do find the research companies like iSuppli do as it provides us with great information and converstaion.
I've noticed this forum is very good for putting Apple down as if they are a horrible company but they will buy Apple's products. I agree with a previous poster, the negative commenters need to run a business of their own then they would see how important it is to make as much profit as possible otherwise your just doing a public service.
I don't care how much profit ANY company makes on the product I'm buying as long as it fits my needs and I am willing to pay the asking price.
If it cost Apple $1 to make an iPod or even a Macbook Pro I would still buy them because their profit margin and my computing needs have nothing to do with each other.
Look how many brick and mortar stores (Circuit City, CompUSA) have gone out of business for lack of profits.
I don't care how much profit ANY company makes on the product I'm buying as long as it fits my needs and I am willing to pay the asking price.
If it cost Apple $1 to make an iPod or even a Macbook Pro I would still buy them because their profit margin and my computing needs have nothing to do with each other.
Look how many brick and mortar stores (Circuit City, CompUSA) have gone out of business for lack of profits.
I believe we're all remembering the negative comments and blogs that followed other reports like this. The early ones caused lots of angst for some people.
You're right, at this point I think most people understand and the defensive statements far outweigh the complaints.
But most of us are thinking back to the times when the opposite was true.
I don't really care about the profits a company make on a product, if a product is worth the price they charge for it I buy it. If not I won't.
All things considered, this new Shuffle is worth the price.
(So is a Unibody MacBook (NOT the Pro) and all other iPods)
All things considered, this new Shuffle is worth the price.
(So is a Unibody MacBook (NOT the Pro) and all other iPods)
Hmph.
That's about $21 more than it's worth.
Seriously, what the hell were they thinking with this one?
That's about $21 more than it's worth.
Seriously, what the hell were they thinking with this one?
I'm really hoping your joking. It's not MR's fault for posting boring news, they don't make the news. The companies make the news, MR just delivers. Don't shoot the messenger.
I find this very interesting.
To think that some of the smallest publicly known electronic components are in an inexpensive consumer device makes me wonder. What's available to the high-end, super-secret devices used by black agencies of the major powers?
I may just get one, despite the earphone controller. Then again, maybe not. I had the last model and rarely used it. I like to see what I'm going to listen to, and I like to have fine control over rewind, etc. The Nano (3G) is small enough for all my uses.
To think that some of the smallest publicly known electronic components are in an inexpensive consumer device makes me wonder. What's available to the high-end, super-secret devices used by black agencies of the major powers?
I may just get one, despite the earphone controller. Then again, maybe not. I had the last model and rarely used it. I like to see what I'm going to listen to, and I like to have fine control over rewind, etc. The Nano (3G) is small enough for all my uses.
$22 in parts does not mean it costs Apple $22. They have labor and packaging and marketing and development and the guy delivering the donuts and rent and paperwork and etc etc etc.
Those $3 fries. They really cause poverty in America.
Those $3 fries. They really cause poverty in America.
Yeah, I do remember those kinds of threads in the past.
It was just kinda funny here, because there wasn't even 1 negative comment in the thread. Just a bunch of people saying "What do you mean Apple can't make money?!?"
It was just kinda funny here, because there wasn't even 1 negative comment in the thread. Just a bunch of people saying "What do you mean Apple can't make money?!?"
If broken down into its chemical constituents, the human body might not cost more than $22 (it's something like 80% water, don't forget).
Besides, component costs and prices shouldn't have much if anything to do with each other. Prices are based on supply and demand, not costs.
Besides, component costs and prices shouldn't have much if anything to do with each other. Prices are based on supply and demand, not costs.
Engineering costs money, too. I develop software, which costs $0 to manufacture, and we're selling it for a lot more than that.
News!
This just in: it does not cost Starbuck's anywhere near the $4 asking price of a cup of coffee. They are indeed making a huge profit. I know, shocking. Even Dunkin Doughnuts makes a huge profit off of a $1.29 cup.
What is with these corporations wanting to make money?
This just in: it does not cost Starbuck's anywhere near the $4 asking price of a cup of coffee. They are indeed making a huge profit. I know, shocking. Even Dunkin Doughnuts makes a huge profit off of a $1.29 cup.
What is with these corporations wanting to make money?
People are just trying to head off the usual trolls who whine about how greedy Apple is, how Apple is a monopoly, and how all this technology should be free or that the price should be determined by what they are willing to pay, which is nothing.
That's not production cost. For $22, you can pick up the individual parts of a shuffle at various locations throughout China or wherever they are manufactured. If you then build a plant to make iPods, buy all the necessary machines, train lots of employees, pay them to assemble the iPods, pay for everyone else working at the plant (management, human resources, site maintenance, electricity, security, taxes and so on), and if you then add some money for iPods that fail in testing, and then you buy a box that you can put the iPod in, _then_ you have the cost of production. And that is still the cost of an iPod on the shelve at a plant in China.
Go to a good restaurant and check what the cost of parts is for a $78 meal.
Wow, this is like the 1st time I saw an article on MacRumors about the cost of materials of a product that did not have a bunch of negative posts. A lot of people have brought up the fact that it also costs $ for R&D, advertising, etc. I'm really shocked!
I wonder how much Apple really pays for each iPod, computer, etc. factoring in materials, manufacturing, advertising, R&D, salaries, etc. That would be interesting to know.
I wonder how much Apple really pays for each iPod, computer, etc. factoring in materials, manufacturing, advertising, R&D, salaries, etc. That would be interesting to know.
You should tell these writers that they are getting paid too much.
Their articles contain only approximately few cents of parts in terms of electricity consumed by their computer.
Their articles contain only approximately few cents of parts in terms of electricity consumed by their computer.