Prospective 970 Prices

[Mr. Anderson]

Originally posted by ftaok
My opinion is that instead of passing off the savings to the consumer, Apple would be more than happy to keep the money themselves.

If they really wanted to pass along the savings, they would have to drop the price by about $300 to $400.

One thing to keep in mind is the cost of R&D for a new machine vs the actual production cost. Usually the R&D is huge and needs to be added into the total system cost just to turn a profit.

An example, and this is true as I have some inside info on this is Sony's Plug'n'Play XMSatellite radio. The cost for the actual manufacturing of the radio is under $5 - but after adding all the packaging, antenna (maybe another $5 at most) and assorted cabling they started selling the unit at $200.00!!! This was all to recoup some design cost.

The same thing goes for Apple. So with a new machine, you might, maybe, see a cheaper base price, but don't count on it.

D