Originally Posted by JeffDM
Here, when people talk chip prices, I think they keep it in the wholesale frame of mind, referencing the publicly known 1000 piece bulk pricing. I am skeptical that the bucket of parts for the Air is $300, and the BOM breakdown ignores a lot of the costs associated with the product.
If your definition of decent is "a little", then maybe. 30% is about their net profit per their 10Q reports. They'll make some on increased volume, but I doubt that much. I also doubt that would quell the pricing complaints. Besides, they're still growing a lot despite selling a luxury product in a down economy, they have no need to cut their margins yet.
Indeed Jeff, but surely you have to agree that it certainly did NOT cost nearly anywhere near $1799. In fact, $999 as a netbook still puts Apples Air at a much larger profit margin than other competitors and I don't want to see replies about cheap. (other posters), I understand marketing, promotions, royalties, heck artist's get about 11% if they are lucky, but clearly Apple has always asked a premium price and back in the day, it used to be quite competitive.
Some will argue that you can price out a dell compared to a Mac Pro and have it cost more, but that's not the point. Apple could have used i7 chips, non EEC memory, then most here could not use the DELL POV to make an argument. Apple clearly does things like this to milk as much as they can. Ironically, I don't know if most here get it or not but it costs far less to manufacture any computer now then it did with the PowerPC and going to the unibody made manufacturing even cheaper, rather, less expensive.
The moot point really is that the Air at $999 is more reasonable, and flash continues to drop in price.
The problem is (especially with upcoming net books), is that Apples business model has them cornered and somewhere along the line, one of the products is going to take a hit unless they refresh to 4 cores. My guess is that it's the very low selling Air with a reduction in price for the Macbook. We could also see better GPU for Macbook Pro's, but other than the screen, firewire and backlit keys, they are pretty close and Apple has a way to make a customer go in the store planning on spending $999.00 but for a few hundred more, give you the options you really want. Next thing you know, they are walking out the door having spent $2000.00. However, with the lay off of 1600 retail employee's and this economy, this may not be the case so much.