Originally Posted by cvaldes1831
The reason why they don't mention is because it's hard to estimate those numbers per product. The only thing the outsider has is visibility into the BOM and a typical estimated manufacturing cost.
Apple, like other companies, does not provide complete breakout of its costs for any given SKU. It makes no sense because it would give a competitive advantage to others. Apple discloses R&D and SG&A as operating expenses as a whole for the company in their financial statements.
And one can use the AVERAGE R&D and SG&A expenses for at least a rough estimate. If the average R&D cost is 7% of sales, and you use 7% as the number for any given product, that's likely to be closer than using zero.
Although it's not clear to me why it matters. if I decide that an iPad is worth $499 to me, I'm going to buy it - regardless of whether Apple's margin is 50% or 5%. Margins mean nothing to consumers (except that, in the long run, high margins mean a healthy company that will likely be around to support them in the future and create new products).
Originally Posted by Josh.B.
Yeah - the $100 rebate is what I remembered.
Millmoss - why did you deny this?
Actually, the original iPhone had sold considerably under 1 million units at the time the rebate is announced, so there couldn't have been millions of people complaining.
I don't know if I'm typical or not, but I bought the original iPhone on day 1. I wasn't the least bit unhappy with my purchase even when Apple dropped the price. It was worth $600 to me and I was happy to pay it. The fact that the price dropped later had no impact on whether that was a good purchase or not. It simply meant that when I replaced it, it would cost less.
Your statement that millions of people were unhappy with the price drop is completely unfounded. You can't just pull numbers out of your rear and expect people to believe them.