Originally Posted by Alonso Perez
Procesor power costs is not the same as unit costs. The CPU in the iPad 2 has two cores to the iPad's 1. That is already a 50% drop in cost per power.
Yes but even if you look on it on a per processor basis it's still over 10% per year for the same model, because old models are made on an old fabrication process and the premium models are all moved to the new shiniest lines on the shiniest fabs.
If you look at the chart for screen prices, you will note a flattening after the initial dramatic drops. 10" screens have been in volume production for many years, used in netbooks. The iPad uses IPS screens, which are new in that format, but IPS itself is quite old as well.
10inch screens in netbooks didn't have that aspect ratio, they're almost all widescreen. I'm willing to bet that the iPad was the first platform to use that screen in volume.
DRAM also drops per MB, but not nearly so quickly for unit prices which are actually quite stable. It's simply that density doubles every couple of years.
Again, even on a chip basis it still drops considerably, certainly by more than 10% per annum.
Bear in mind also that many prices have risen in the past couple of years, since the bottom of the market crisis. Commodity prices are all well off their 2009 lows. Labor prices are rising in China, etc.
All true but none of those factors have seriously impacted tech component deflation because it is mostly capital intensive and not material or labour intensive. Interest rates are extremely low right now, for $, which most Asian markets peg to.
All I am saying is, cheap is never free. Somewhere, there will be a cost.
Tech gets cheaper and better every single year, it has done since it began as a measurable industry and it will for at least a few more decades - aside from a few crunches due to supply issues. 10% is not a lot by tech deflation figures - even on a per unit basis. It's certainly not call for people to start tearing their hair out on web forums and complain that Apple is stealing bread from babies mouths.