"We really do live in a global economy and it is important that people be able to take part in that economy throughout the world. Even then Apple has been on a highering binge in the US"
Quote:
Originally Posted by MacTripper
Well then that's all good then.
An obvious catch from a guy with "tripper"as part of his name ..... still funny 'tho.
As soon as Steve Jobs announced the pricing, I thought it was about $100 too much (on each version). Obviously companies can charge anything they want, but if they knocked $100 off the price for each one, they'll have tons more people buying it.
As soon as Steve Jobs announced the pricing, I thought it was about $100 too much (on each version). Obviously companies can charge anything they want, but if they knocked $100 off the price for each one, they'll have tons more people buying it.
If they knocked another hundred off even tonnes more would by it. I just thought of something, if they knocked another hundred off of that even more tonnes would buy it.
Pretty much everyone was surprised it was so cheap. It's not a netbook and shouldn't be directly compared to its price point, especially if one only looks at the display size and resolution as proof that they are the same.
This is insane. I don't care paying that much, I really don't, for a good Apple product but damn! No camera, no multitasking in the OS, no connectivity (you have to buy adapters!) and a long list of other 'no's make the iPad a much less attractive product every day.
Really, the iPad is a great product in diapers... I'll wait to get at least the teenage version
You know if you don't think the price is right for you its simple, DONT BUY IT, simple as that. Meanwhile the rest of use will be enjoying our iPads while you moan and groan.
Wrong! All popular forum applications have this ability.
Sure they do. And the average 16 year old knows how to cloke his IP address. Not to mention most ISP use dynamic IP addressing and not static. So the point is if a member is really stressing you out that much put them on ignore and then shut up about it.
The 64 gig + 3G Wireless model is (slightly less of ) the device that we were expecting. At $829, that's not that far off from the $1000 "expected" price - though I personally never expected it to be this high. Throw in the almost essential accessories and you're sitting pretty at a cool grand for this little gizmo.
While i believe the iPad platform will grow to become important over time, in its current form it it overpriced. And I'm saying that with full realization that there aren't really any products that will deliver the same experience with the offering Apple is making available.
It should be a felony to display the profit margins of any company. Think about it. Like anyone wants to disclose cost of goods. I don't think so. I use to work for Tandy/Radio Shack back in 1980. I was privy to costs of goods. Margins were very impressive. Had I been blabbing about this, legal action would have ensued.
It should be a felony to display the profit margins of any company. Think about it. Like anyone wants to disclose cost of goods. I don't think so. I use to work for Tandy/Radio Shack back in 1980. I was privy to costs of goods. Margins were very impressive. Had I been blabbing about this, legal action would have ensued.
1) iSuppli doesn't work for Apple and are under no NDA to prevent them from locating the individual components and pricing them out.
2) There component and manufacturing speculations are not stating the profit margins. Apple will do that for us in their quarterly earnings as required by law.
All these replies and no one mentioned economies of scale?
I think the price seems good enough since it's under the $499 barrier. Granted, that's for the base version, if you want 64GB and 3G that is nearly if not as expensive as a base Macbook. It's more a case of penetration pricing than price skimming for all the business guys here. I'd even go as far as saying that the base price grabs the customer, and the limitations of the base model will make the more expensive ones all so tempting...
With these obvious insights, perhaps I should be an analyst!
Oh, its better than that. Apple's gets free utilities in a donated building. The Postal Service give the company free postage. FedEx and UPS make all deliveries free of charge. All the employees work for the sheer joy of it and take no salary or wages. Even Apple's lobbyists legal teams donate their services. What this really gets down to is that Apple's only expense is component parts for its products.
Bingo. You win the cookie for today.
It costs easily billions just to "keep the lights on" at Apple. In business this is called overhead. Further, they don't sell boxes of parts, they sell products that have to be designed, marketed, manufactured, and shipped. Even if Apple told us how much they spent on R&D for the iPad, that still would not tell us the actual costs behind the product, since a good part of it is wrapped up in general overhead. The iSupply numbers are sort of interesting (even though based mainly on guesswork), but not very illuminating as far as telling us how much this product costs Apple to sell on a per-unit basis.
As soon as Steve Jobs announced the pricing, I thought it was about $100 too much (on each version). Obviously companies can charge anything they want, but if they knocked $100 off the price for each one, they'll have tons more people buying it.
Not necessarily.
Based on your theory, and as solipsism commented, knocking off another $100, tons more people would buy it.
Continuing on, at what point would you price it at so that everybody would get one?
As we have seen quite often here that members suggest software that is totally free; that it does everything that the high priced ones do. However, there are very few takers.
Why?
Well first of all, nobody is promoting it. At least there is not enough noise to create sufficient awareness.
Secondly, there is virtually no support. Perhaps in the beginning, but the developer can't obviously maintain it due to lack of funds or the wife finally says, 'get a real job. One that pays.'
Lack or universal acceptance and usage, and no enterprise or few consumers will touch it.
Since the developer can't cover his costs, distribution becomes an issue. As OS's are updated, he can't get fixes out fast enough.
Then somebody comes out with a 'better' mouse trap and all of a sudden his application is questioned even by the same people who originally pushed it.
In this day and age, technology is advancing so fast, that there is no guarantee that a developer/manufacturer will recover their cost before a competitor comes along with a perceived better product. As well, just seeing some of the posts here, often perception becomes reality and it is not always good.
Based on your theory, and as solipsism commented, knocking off another $100, tons more people would buy it.
Continuing on, at what point would you price it at so that everybody would get one?
As we have seen quite often here that members suggest software that is totally free; that it does everything that the high priced ones do. However, there are very few takers.
Why?
Well first of all, nobody is promoting it. At least there is not enough noise to create sufficient awareness.
Secondly, there is virtually no support. Perhaps in the beginning, but the developer can't obviously maintain it due to lack of funds or the wife finally says, 'get a real job. One that pays.'
Lack or universal acceptance and usage, and no enterprise or few consumers will touch it.
Since the developer can't cover his costs, distribution becomes an issue. As OS's are updated, he can't get fixes out fast enough.
Then somebody comes out with a 'better' mouse trap and all of a sudden his application is questioned even by the same people who originally pushed it.
In this day and age, technology is advancing so fast, that there is no guarantee that a developer/manufacturer will recover their cost before a competitor comes along with a perceived better product. As well, just seeing some of the posts here, often perception becomes reality and it is not always good.
I was reading the estimated cost on all the iPads and I believe the margin was about 41% on all of them. I don't really see the price dropping what I do see is the 16GB being discontinued after a while and the 32GB dropping to 499.00.
Apple tends to try and keep the same price point but give you more for the same price over time as the cost of technology drops.
Oh, its better than that. Apple's gets free utilities in a donated building. The Postal Service give the company free postage. FedEx and UPS make all deliveries free of charge. All the employees work for the sheer joy of it and take no salary or wages. Even Apple's lobbyists legal teams donate their services. What this really gets down to is that Apple's only expense is component parts for its products.
Another reason for Apple to bring the manufacturing back in-house then the components would be free too.
Edit: I'm sure MacWorld would give them a free booth this year.
If you would like to know Apple's Actual Revenue, their Actual Cost of Goods Sold, their Actual R&D expense, their actual Selling, General and Adminsitrative Expense, their Actual Taxes....and thereby know their Actual Gross and Net margin, you can find it all in this secret report called an Income Statement which was leaked here:
I was reading the estimated cost on all the iPads and I believe the margin was about 41% on all of them. I don't really see the price dropping what I do see is the 16GB being discontinued after a while and the 32GB dropping to 499.00.
Apple tends to try and keep the same price point but give you more for the same price over time as the cost of technology drops.
Apple set the price and they can change the price as required. The price of NAND flash per GB will continue to decrease as new processes come on line. Intel/Micron just announce 25NM process which means that memory capacity will again double next year for about the same price so if you wait a year you can probably get 32, 64, 128 for the price of 16, 32, 64 the IPad will also probably have a new A5 processor and maybe even a camera with Ichat. The technology changes all the time. The device can either do what you want or not. If not don't buy it, wait for the next version.
This is what I was initially thinking. But knowing Steve's obsession about not selling any computer product (obviously excluding iPods) below $500, a more likely scenario is that the base model will be $499 with 32GB and the 64GB model will be reduced to $599. Such a price adjustment would be inline with newer higher density (8GB) flash chips going into production some time in Q2 of this year and will allow Apple to keep high margins while iPads are supply constrained.
If Apple has no supply constraints, another possible scenario is that the base model ($499) will remain WiFi only but the 64GB model ($599) will get 3G radio in addition to the 64GB memory. I don't think it is practical for Apple to stock 6 SKUs for this product in the long term.
I was reading the estimated cost on all the iPads and I believe the margin was about 41% on all of them. I don't really see the price dropping what I do see is the 16GB being discontinued after a while and the 32GB dropping to 499.00.
Apple tends to try and keep the same price point but give you more for the same price over time as the cost of technology drops.
How did you calculate the 41% margin. Even allowing for 15% sales/distribution/channel overhead, if the cost points iSupply is reporting is anywhere near the truth, the gross margins for iPads are much higher than 41%.
How did you calculate the 41% margin. Even allowing for 15% sales/distribution/channel overhead, if the cost points iSupply is reporting is anywhere near the truth, the gross margins for iPads are much higher than 41%.
I wasn't talking about profit, I as talking about cost of the parts compared to what the different versions were selling for. Actually looks like this site has the gross margin at about 51% for the 32gb 3G
Comments
Also most forums do not have the ability to block an IP address
Wrong! All popular forum applications have this ability.
"We really do live in a global economy and it is important that people be able to take part in that economy throughout the world. Even then Apple has been on a highering binge in the US"
Well then that's all good then.
An obvious catch from a guy with "tripper"as part of his name ..... still funny 'tho.
As soon as Steve Jobs announced the pricing, I thought it was about $100 too much (on each version). Obviously companies can charge anything they want, but if they knocked $100 off the price for each one, they'll have tons more people buying it.
If they knocked another hundred off even tonnes more would by it. I just thought of something, if they knocked another hundred off of that even more tonnes would buy it.
Pretty much everyone was surprised it was so cheap. It's not a netbook and shouldn't be directly compared to its price point, especially if one only looks at the display size and resolution as proof that they are the same.
This is insane. I don't care paying that much, I really don't, for a good Apple product but damn! No camera, no multitasking in the OS, no connectivity (you have to buy adapters!) and a long list of other 'no's make the iPad a much less attractive product every day.
Really, the iPad is a great product in diapers... I'll wait to get at least the teenage version
You know if you don't think the price is right for you its simple, DONT BUY IT, simple as that. Meanwhile the rest of use will be enjoying our iPads while you moan and groan.
Wrong! All popular forum applications have this ability.
Sure they do. And the average 16 year old knows how to cloke his IP address. Not to mention most ISP use dynamic IP addressing and not static. So the point is if a member is really stressing you out that much put them on ignore and then shut up about it.
While i believe the iPad platform will grow to become important over time, in its current form it it overpriced. And I'm saying that with full realization that there aren't really any products that will deliver the same experience with the offering Apple is making available.
-Blurp
It should be a felony to display the profit margins of any company. Think about it. Like anyone wants to disclose cost of goods. I don't think so. I use to work for Tandy/Radio Shack back in 1980. I was privy to costs of goods. Margins were very impressive. Had I been blabbing about this, legal action would have ensued.
1) iSuppli doesn't work for Apple and are under no NDA to prevent them from locating the individual components and pricing them out.
2) There component and manufacturing speculations are not stating the profit margins. Apple will do that for us in their quarterly earnings as required by law.
I think the price seems good enough since it's under the $499 barrier. Granted, that's for the base version, if you want 64GB and 3G that is nearly if not as expensive as a base Macbook. It's more a case of penetration pricing than price skimming for all the business guys here. I'd even go as far as saying that the base price grabs the customer, and the limitations of the base model will make the more expensive ones all so tempting...
With these obvious insights, perhaps I should be an analyst!
Oh, its better than that. Apple's gets free utilities in a donated building. The Postal Service give the company free postage. FedEx and UPS make all deliveries free of charge. All the employees work for the sheer joy of it and take no salary or wages. Even Apple's lobbyists legal teams donate their services. What this really gets down to is that Apple's only expense is component parts for its products.
Bingo. You win the cookie for today.
It costs easily billions just to "keep the lights on" at Apple. In business this is called overhead. Further, they don't sell boxes of parts, they sell products that have to be designed, marketed, manufactured, and shipped. Even if Apple told us how much they spent on R&D for the iPad, that still would not tell us the actual costs behind the product, since a good part of it is wrapped up in general overhead. The iSupply numbers are sort of interesting (even though based mainly on guesswork), but not very illuminating as far as telling us how much this product costs Apple to sell on a per-unit basis.
As soon as Steve Jobs announced the pricing, I thought it was about $100 too much (on each version). Obviously companies can charge anything they want, but if they knocked $100 off the price for each one, they'll have tons more people buying it.
Not necessarily.
Based on your theory, and as solipsism commented, knocking off another $100, tons more people would buy it.
Continuing on, at what point would you price it at so that everybody would get one?
As we have seen quite often here that members suggest software that is totally free; that it does everything that the high priced ones do. However, there are very few takers.
Why?
Well first of all, nobody is promoting it. At least there is not enough noise to create sufficient awareness.
Secondly, there is virtually no support. Perhaps in the beginning, but the developer can't obviously maintain it due to lack of funds or the wife finally says, 'get a real job. One that pays.'
Lack or universal acceptance and usage, and no enterprise or few consumers will touch it.
Since the developer can't cover his costs, distribution becomes an issue. As OS's are updated, he can't get fixes out fast enough.
Then somebody comes out with a 'better' mouse trap and all of a sudden his application is questioned even by the same people who originally pushed it.
In this day and age, technology is advancing so fast, that there is no guarantee that a developer/manufacturer will recover their cost before a competitor comes along with a perceived better product. As well, just seeing some of the posts here, often perception becomes reality and it is not always good.
Not necessarily.
Based on your theory, and as solipsism commented, knocking off another $100, tons more people would buy it.
Continuing on, at what point would you price it at so that everybody would get one?
As we have seen quite often here that members suggest software that is totally free; that it does everything that the high priced ones do. However, there are very few takers.
Why?
Well first of all, nobody is promoting it. At least there is not enough noise to create sufficient awareness.
Secondly, there is virtually no support. Perhaps in the beginning, but the developer can't obviously maintain it due to lack of funds or the wife finally says, 'get a real job. One that pays.'
Lack or universal acceptance and usage, and no enterprise or few consumers will touch it.
Since the developer can't cover his costs, distribution becomes an issue. As OS's are updated, he can't get fixes out fast enough.
Then somebody comes out with a 'better' mouse trap and all of a sudden his application is questioned even by the same people who originally pushed it.
In this day and age, technology is advancing so fast, that there is no guarantee that a developer/manufacturer will recover their cost before a competitor comes along with a perceived better product. As well, just seeing some of the posts here, often perception becomes reality and it is not always good.
I was reading the estimated cost on all the iPads and I believe the margin was about 41% on all of them. I don't really see the price dropping what I do see is the 16GB being discontinued after a while and the 32GB dropping to 499.00.
Apple tends to try and keep the same price point but give you more for the same price over time as the cost of technology drops.
Oh, its better than that. Apple's gets free utilities in a donated building. The Postal Service give the company free postage. FedEx and UPS make all deliveries free of charge. All the employees work for the sheer joy of it and take no salary or wages. Even Apple's lobbyists legal teams donate their services. What this really gets down to is that Apple's only expense is component parts for its products.
Another reason for Apple to bring the manufacturing back in-house then the components would be free too.
Edit: I'm sure MacWorld would give them a free booth this year.
http://finapps.forbes.com/finapps/js...apl&period=qtr
I was reading the estimated cost on all the iPads and I believe the margin was about 41% on all of them. I don't really see the price dropping what I do see is the 16GB being discontinued after a while and the 32GB dropping to 499.00.
Apple tends to try and keep the same price point but give you more for the same price over time as the cost of technology drops.
Apple set the price and they can change the price as required. The price of NAND flash per GB will continue to decrease as new processes come on line. Intel/Micron just announce 25NM process which means that memory capacity will again double next year for about the same price so if you wait a year you can probably get 32, 64, 128 for the price of 16, 32, 64 the IPad will also probably have a new A5 processor and maybe even a camera with Ichat. The technology changes all the time. The device can either do what you want or not. If not don't buy it, wait for the next version.
http://finance.yahoo.com/family-home...iggest-ripoffs
Expect it at $399 by July 1st.
This is what I was initially thinking. But knowing Steve's obsession about not selling any computer product (obviously excluding iPods) below $500, a more likely scenario is that the base model will be $499 with 32GB and the 64GB model will be reduced to $599. Such a price adjustment would be inline with newer higher density (8GB) flash chips going into production some time in Q2 of this year and will allow Apple to keep high margins while iPads are supply constrained.
If Apple has no supply constraints, another possible scenario is that the base model ($499) will remain WiFi only but the 64GB model ($599) will get 3G radio in addition to the 64GB memory. I don't think it is practical for Apple to stock 6 SKUs for this product in the long term.
I was reading the estimated cost on all the iPads and I believe the margin was about 41% on all of them. I don't really see the price dropping what I do see is the 16GB being discontinued after a while and the 32GB dropping to 499.00.
Apple tends to try and keep the same price point but give you more for the same price over time as the cost of technology drops.
How did you calculate the 41% margin. Even allowing for 15% sales/distribution/channel overhead, if the cost points iSupply is reporting is anywhere near the truth, the gross margins for iPads are much higher than 41%.
How did you calculate the 41% margin. Even allowing for 15% sales/distribution/channel overhead, if the cost points iSupply is reporting is anywhere near the truth, the gross margins for iPads are much higher than 41%.
I wasn't talking about profit, I as talking about cost of the parts compared to what the different versions were selling for. Actually looks like this site has the gross margin at about 51% for the 32gb 3G
http://techcrunchies.com/appleipad-bill-of-materials/
iPad 32GB : $296.00
iPad 64GB : $347.00
iPad 16GB 3G : $286.50
iPad 32GB 3G : $312.00
iPad 64GB 3G : $363.00
The implied gross margin is the highest for iPad 32GB with 3G at 55.1%