High cost of new iPad components drives down profit margins

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  • Reply 41 of 111
    They should sell it for a loss like amazon, that's a brilliant business model...
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  • Reply 42 of 111
    adonissmuadonissmu Posts: 1,776member
    Quote:
    Originally Posted by Tune View Post






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  • Reply 43 of 111
    adonissmuadonissmu Posts: 1,776member
    Quote:
    Originally Posted by Red Oak View Post


    The lowest gross margin assuming the numbers are correct is 37% (for the new iPad 16 GB WiFi). Still very healthy. And as stated already, these costs will rapidly decrease



    And of course, all the content purchases are not included... Which is Amazon's sole attempt of making any profit on the Fire. I have a hard time believing the average content sales on the Fire are higher than the average iPad



    They want you to buy the $80 a month subscription plan so you can make it rain on them every month on schedule.
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  • Reply 44 of 111
    dasanman69dasanman69 Posts: 13,002member
    Quote:
    Originally Posted by AdonisSMU View Post


    They want you to buy the $80 a month subscription plan so you can make it rain on them every month on schedule.



    If you're referring to Amazon Prime then you're mistaken, its $79 a year.



    Considering all you get its a good deal.



    http://www.amazon.com/gp/prime/ref=a...amazon%20prime
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  • Reply 45 of 111
    sleepy3sleepy3 Posts: 244member
    Quote:
    Originally Posted by Quadra 610 View Post


    In defense of Samsung??



    There is no "defense of Samsung" possible, or any defense of anyone else who had every opportunity to change the game in 2007, and then again in 2010, but instead ended up trying to ape Apple.



    Where was Samsung's big January 2010 tablet unveiling? You know, the one where it would be the Samsung CEO sitting comfortably in that easy-chair giving the keynote and astounding the tech world. Or Samsung's opportunity in 2007 to say via their CEO in a landmark keynote "It's an iPod (well, not for Sammy), a phone, and an internet communicator . . . an iPod, a phone, and internet communicator . . ."



    What happened? All these game-changers, after which competing devices all began to look like them, (with some people not even being able to tell them apart: http://www.macrumors.com/2011/10/14/...axy-tab-apart/) have Apple logos on the back.



    I agree. Where was apple when motorolla INVENTED THE CELL PHONE? Where was apple when in 1997 the world first MP3 player was shipped?



    Point is....how about apple actually innovate and create something NEVER SEEN BEFORE rather than take something thats always been around and put a spit and polish on it?



    Quit acting like apple invented the cellphone or the rectangle, was always around.



    Disclaimer: Not saying the idevices are bad products, they are actually great, i still use my 4th gen ipod nano to this day. Just saying lets not get carried away.
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  • Reply 46 of 111
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by sleepy3 View Post


    I agree. Where was apple when motorolla INVENTED THE CELL PHONE? Where was apple when in 1997 the world first MP3 player was shipped?



    Point is....how about apple actually innovate and create something NEVER SEEN BEFORE rather than take something thats always been around and put a spit and polish on it?



    Quit acting like apple invented the cellphone or the rectangle, was always around.



    Disclaimer: Not saying the idevices are bad products, they are actually great, i still use my 4th gen ipod nano to this day. Just saying lets not get carried away.



    Look up 'straw man argument'.



    No one ever claimed that Apple invented the cell phone or MP3 player.



    If you ever have an intelligent argument, feel free to let us know.
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  • Reply 47 of 111
    paxmanpaxman Posts: 4,729member
    Lower margins is the penalty you pay when you bring new tech to the market. As production tech improves and component prices drop, the margins will self correct. That is the advantage of high volume purchasing.
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  • Reply 48 of 111
    Quote:

    "Although it was not plainly demarcated, the battery cell package is thought to be a Samsung product as well, which brings the company's share of BOM to nearly 50 percent."



    So much for boycotting Samsung in favor of buying Apple products. Samsung makes big bucks from every iPad purchased. Given the difference in volume, they likely make more, in absolute terms, form iPad sales than they do from their Samsung branded tablets.
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  • Reply 49 of 111
    dasanman69dasanman69 Posts: 13,002member
    Quote:
    Originally Posted by jragosta View Post


    Look up 'straw man argument'.



    No one ever claimed that Apple invented the cell phone or MP3 player.



    If you ever have an intelligent argument, feel free to let us know.



    He's correct in some ways. Apple didn't invent the touchscreen phone nor the tablet. What Apple excels in is taking current technology and ideas and putting them together in a new way plus pairing it with great software. Apple makes things streamlined and sexy looking plus easy to use which is something that's obviously not easily done.
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  • Reply 50 of 111
    Quote:
    Originally Posted by Postulant View Post


    Is iSuppli privy to what Apple pays for components? With Apple's massive economy of scale, there's no telling what they are paying for components.



    I was thinking the same thing. But likely they can determine the delta between the new parts and the old, leaving the "lower margin" conclusion intact, even if the exact number is, at best, suspect.
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  • Reply 51 of 111
    sleepy3sleepy3 Posts: 244member
    Quote:
    Originally Posted by dasanman69 View Post


    He's correct in some ways. Apple didn't invent the touchscreen phone nor the tablet. What Apple excels in is taking current technology and ideas and putting them together in a new way plus pairing it with great software. Apple makes things streamlined and sexy looking plus easy to use which is something that's obviously not easily done.



    Thank yu. exactly what i was trying to say.



    On the other hand you have companies like motorolla and Samsung who excl at making the backbone for things to work. Hence their huge number of FRAND patents. Maybe if they spend less time on researching how to make cellphones talk better to each other, and make 3g better and 4g better and make further the technology of organic LEDs and so on/ Maybe if they spend less time on that stuff and focus on design, they may be able to compete.
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  • Reply 52 of 111
    Quote:
    Originally Posted by Red Oak View Post


    The lowest gross margin assuming the numbers are correct is 37% (for the new iPad 16 GB WiFi). Still very healthy. And as stated already, these costs will rapidly decrease



    And of course, all the content purchases are not included... Which is Amazon's sole attempt of making any profit on the Fire. I have a hard time believing the average content sales on the Fire are higher than the average iPad



    Content sales? Probably.



    But Amazon sells much more than digital content with the Fire, and so the estimate is not very well-grounded. Amazon sells pretty much everything, and the Fire is designed as a portal to their store (much like the iPad).



    Apple claims it makes almost no profit from App sales and other content, or is that old information which has now changed?
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  • Reply 53 of 111
    Quote:
    Originally Posted by Vadania View Post


    So does this mean the "Apple tax" my guy friends are telling me I'm paying are false?



    Nope. It doesn't tell you that. At most, it tells you that Apple makes a lower margin on the iPad than it used to at the launch of the iPad 2.
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  • Reply 54 of 111
    Quote:
    Originally Posted by Suddenly Newton View Post


    It won't placate the "Apple is greedy" trolls.



    Especially all the ones that need to buy a new AV adapter for their iPad.



    http://store.apple.com/us/product/MD098



    $39 bucks is pushing it. But when you consider that the old one works just fine, but now requires you to dismiss a useless Error message, then "greedy" might not be too far off.
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  • Reply 55 of 111
    solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by I am a Zither Zather Zuzz View Post


    But when you consider that the old one works just fine, but now requires you to dismiss a useless Error message, then "greedy" might not be too far off.



    So you've reasoned that because Apple is being greedy by using the same same dock connector another year ? note that this is it's 10 year of use ? when they could have completely altered it year after year so that you would never see an error message you can ignore because they could make it so it would never plug in. Brilliant¡
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  • Reply 56 of 111
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by dasanman69 View Post


    He's correct in some ways. Apple didn't invent the touchscreen phone nor the tablet. What Apple excels in is taking current technology and ideas and putting them together in a new way plus pairing it with great software. Apple makes things streamlined and sexy looking plus easy to use which is something that's obviously not easily done.



    That's true, but he's not the least bit correct. He claimed that Apple fans claimed that Apple invented the cell phone and MP3 player. No one ever claimed that, so it's a straw man argument.
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  • Reply 57 of 111
    Quote:
    Originally Posted by SolipsismX View Post


    So you've reasoned that because Apple is being greedy by using the same same dock connector another year ? note that this is it's 10 year of use ? when they could have completely altered it year after year so that you would never see an error message you can ignore because they could make it so it would never plug in. Brilliant¡



    Nope. Wrong again.



    Here's my reasoning:



    No dock connector is really necessary. Others add standard ports.



    The AV connector is priced at 39 bucks, while comparable cables are much cheaper.



    There seems to be no physical need for existing owners to use the new overpriced connector, except that Apple screwed something to make it necessary.



    Understand? Or do I have to go on and on once again? Do I need to draw a picture or something?
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  • Reply 58 of 111
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by dasanman69 View Post


    He's correct in some ways. Apple didn't invent the touchscreen phone nor the tablet. What Apple excels in is taking current technology and ideas and putting them together in a new way plus pairing it with great software. Apple makes things streamlined and sexy looking plus easy to use which is something that's obviously not easily done.



    Quote:
    Originally Posted by I am a Zither Zather Zuzz View Post


    Nope. Wrong again.



    Here's my reasoning:



    No dock connector is really necessary. Others add standard ports.



    The AV connector is priced at 39 bucks, while comparable cables are much cheaper.



    There seems to be no physical need for existing owners to use the new overpriced connector, except that Apple screwed something to make it necessary.



    Understand? Or do I have to go on and on once again? Do I need to draw a picture or something?



    Which standard port that was available 10 years ago would do all the same things as the 30 pin connector?
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  • Reply 59 of 111
    Quote:
    Originally Posted by jragosta View Post


    Which standard port that was available 10 years ago would do all the same things as the 30 pin connector?



    None. What does the AV connector do today that no standard port will do?
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  • Reply 60 of 111
    Quote:
    Originally Posted by sleepy3 View Post


    I agree. Where was apple when motorolla INVENTED THE CELL PHONE? Where was apple when in 1997 the world first MP3 player was shipped?



    Point is....how about apple actually innovate and create something NEVER SEEN BEFORE rather than take something thats always been around and put a spit and polish on it?



    Quit acting like apple invented the cellphone or the rectangle, was always around.



    Disclaimer: Not saying the idevices are bad products, they are actually great, i still use my 4th gen ipod nano to this day. Just saying lets not get carried away.



    I think you need to understand the difference between invention and innovation.
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