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user_xyz

macrumors 6502
Original poster
Nov 30, 2018
384
435
I'd like to get the new mini but why so much extra for GPS??
How much might that additional chip-set cost apple? $8.00 to $14.00 dollars US?

ETA: And yes I know it's a combined chipset with Cellular as well.
 

sparksd

macrumors G3
Jun 7, 2015
8,772
26,347
Seattle WA
Yep!! :D


I know who am "I" to argue with the Worlds most valuable company ?? !! :D

Good - you know your place in the Universe!
[doublepost=1554163752][/doublepost]
Yep!! :D


I know who am "I" to argue with the Worlds most valuable company ?? !! :D

btw, I wasn't being snarky - I really believe that their marketing people did a very careful price point evaluation on this add-on, just like they do for every one of their products. Their go-do is to maximize profits by selling as many units at the highest price possible. You can bet they have plenty of metrics to show them where the knee in the price curve is for every item they sell.
 
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PBG4 Dude

macrumors 601
Jul 6, 2007
4,246
4,450
Apple not only has to pay for cellular hardware, they also have to license the patents behind the cellular/GPS chips. I’m sure the key to unlock government-controlled GPS satellites isn’t free either (GPS was originally developed by the military to guide smart missiles).
 
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sparksd

macrumors G3
Jun 7, 2015
8,772
26,347
Seattle WA
Apple not only has to pay for cellular hardware, they also have to license the patents behind the cellular/GPS chips. I’m sure the key to unlock government-controlled GPS satellites isn’t free either (GPS was originally developed by the military to guide smart missiles).

There are no fees paid by vendors like Apple for GPS access, it is all taxpayer funded (I worked on GPS systems, including the satellites themselves). Apple gets a lot of their chips from Broadcom and don't license the patents.

https://www.cnbc.com/2018/06/05/bro...rom-every-new-iphone-jp-morgan-estimates.html
 

Newtons Apple

Suspended
Mar 12, 2014
22,757
15,253
Jacksonville, Florida
Good - you know your place in the Universe!
[doublepost=1554163752][/doublepost]

btw, I wasn't being snarky - I really believe that their marketing people did a very careful price point evaluation on this add-on, just like they do for every one of their products. Their go-do is to maximize profits by selling as many units at the highest price possible. You can bet they have plenty of metrics to show them where the knee in the price curve is for every item they sell.


Apple is one of the best when it comes to marketing.

I seldom question them.
 

Wando64

macrumors 68020
Jul 11, 2013
2,097
2,625
So why is it $130.00 more??

Because Apple has made a judgement that this functionality is worth that much to most customers.
The actual cost is completely irrelevant. That is not how things work.
 

haruhiko

macrumors 604
Sep 29, 2009
6,529
5,873
Apple not only has to pay for cellular hardware, they also have to license the patents behind the cellular/GPS chips. I’m sure the key to unlock government-controlled GPS satellites isn’t free either (GPS was originally developed by the military to guide smart missiles).
GPS is free to use. The $130 premium for the Cellular iPad has been there since the very first iPad. It might have made sense back then but not very much now.
 

cmaier

Suspended
Jul 25, 2007
25,405
33,471
California
GPS is free to use. The $130 premium for the Cellular iPad has been there since the very first iPad. It might have made sense back then but not very much now.
Unless apple is forced to pay Qualcomm a fixed percentage of the overall device cost for the privilege of including a cellular radio...
 

RevTEG

macrumors 65816
Oct 28, 2012
1,343
1,186
San Jose, Ca
Every iPad I've ever owned, since gen 1, has been the cellular models. Yes, the extra is crazy, but its nothing new to the mini 5. It's always been that much extra. It just seems to be what it is.
 

PBG4 Dude

macrumors 601
Jul 6, 2007
4,246
4,450
GPS is free to use. The $130 premium for the Cellular iPad has been there since the very first iPad. It might have made sense back then but not very much now.
It's $150 (ahem, 149) now.

There are no fees paid by vendors like Apple for GPS access, it is all taxpayer funded (I worked on GPS systems, including the satellites themselves). Apple gets a lot of their chips from Broadcom and don't license the patents.

https://www.cnbc.com/2018/06/05/bro...rom-every-new-iphone-jp-morgan-estimates.html
Thanks for the correction.

I did not know that about GPS!
tumblr_inline_omvtveX5Iy1qm3gv4_500.gif
 
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*~Kim~*

macrumors 65816
May 6, 2013
1,045
376
UK
In the UK I believe it used to be £100 (I’m sure that’s what it was on the iPad 3) now it is £120 (2019 models) or £130 (2018 models.)
 
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