Originally Posted by Relic
That's my biggest problem with the current 27" Apple Display, their asking way to much for it. I would dare say that the margins on that display is about 600 dollars, maybe more, they display panel alone isn't worth more then 150 dollars, Apple is spending the money on the Thunderport hub and metal (which is actually a fairly cheap material in itself) at market cost there is about 12 dollars worth of Aluminum in there.
Sorry, they don't have $600 of gross profit in that Thunderbolt display. They probably PAY $600 for it fully finished, and I might be a little low.
That panel costs Apple far more than $150. Where do you get your numbers from?
Do you know how much milling time is for fabricating metal? How much milling time is there for that back panel? It doesn't take them 5 minutes just for milling time. And how much metal is lost for each monitor? They have to factor those costs in and Foxconn or whomever may not even make that part, they go with outside suppliers to make each component and Foxconn does the assembly work.
I've spent some time looking at mfg costs of metal. It's not as cheap as you think when you are dealing with the types of metals, fabrication methods and finishing methods Apple has on their products.
If they used ultra cheap aluminum that was stamped, that's much cheaper process, but Apple isn't doing that. They are taking blocks of aluminum and milling them, that's what they use for the iPhones, iPads, laptops and desktops.
The case for the Mac Pro is extruded, so they take the block of aluminum, extrude it, and then it goes through a series of processes in milling it down to precise shape, and then polished, buffed, sand blasted, etc., anodized and while they use robotics, there are operators paid by the hour and each process costs a lot of money per hour. The grade of aluminum that Apple uses, from what I can tell is amongst the highest priced aluminum. It's more like 6061 grade aluminum. Have you priced that grade aluminum lately? It's not $.05 a pound. I assure you. and there is a lot of aluminum that they pay for that gets turned into scrap which they only recoup a small portion.
The cheaper grade panels on $450 27 inch monitors are probably $150 panels, but the higher res 2550 x 1440 are more like $300.
Just in machine time, from start to finish, it probably eats up about $75 or more per case, plus the price of aluminum, plus shipping, so it's probably ends up around $100 or more JUST for the case before it goes to final assembly.