New iPod Shuffle Contains $22 Worth of Parts[/url]
This is the most inane thing I've read all day (maybe all year). I believe the human body has about $1.97 worth of tangible value. Cremate a body and you get about 4 ounces of ash.
Would be more interesting if they actually did some of these checks on different products from different companies. And *then* compared them, to get a picture of what the possible profit margins are.
Look at everyone making excuses. The shuffle is still a crap player which I wouldn't even use if it were given to me for free. Seriously, at least put a button on it. I wouldn't buy it for $5. I can only imagine how horrible the sound quality on it is.
Really, the only ipod I'd consider is the ipod touch just for multimedia sake, but I have an iphone so there is no point. I'd honestly rather get an Archos 5 over an ipod touch but I heard archos has poor customer support. Though the ipod touch can sound better with 3rd party accessories. Yeah, never mind the whole archos 5 thing.
I really am quite disappointed with all of apple's ipods because of their poor sound quality compared to other manufacturers.
Reducing it to a pile of ash is probably not the best way to determine the value of an itemThis is the most inane thing I've read all day (maybe all year). I believe the human body has about $1.97 worth of tangible value. Cremate a body and you get about 4 ounces of ash.
I could build my own with old PC components for much more less:
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Actually, you're wrong. Profit margin (or more correctly, gross profit margin, in this case) is defined as:
Profit Margin = (Revenue - Cost of Goods Sold) / Revenue
Here's a link that explains it:
http://en.wikipedia.org/wiki/Gross_profit_margin
What you are describing is mark up:
http://en.wikipedia.org/wiki/Markup_(business)
The poster you were correcting actually got it right.
Worth of parts? I dont suppose there were any workers in the factories they needed to pay, or shipping costs...
BusinessWeek reports on a teardown of the new iPod shuffle by research firm iSuppli, revealing that Apple's diminutive player contains approximately $22 worth of parts.According to iSuppli's analysis, over half the cost comes from two Samsung components, the main controller chip and the 4GB of flash memory at approximately $6 each. The battery, capacitors, and resistors in the new iPod shuffle were also discovered to be remarkably small by industry standards.iSuppli's calculations consider only the actual parts of the device and do not include research and development, manufacturing, distribution, and patent royalty costs.
Article Link: New iPod Shuffle Contains $22 Worth of Parts
I though you wanted the device to cost more to make than what you sell it for?![]()
I could build my own with old PC components for much more less:
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I'm buying the parts and making my own!
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