Without factoring other costs such as development, manufacturing, freight, and marketing, the analyst said his BOM totals imply gross margins of 49.7 percent, 50.8 percent and 42.2 percent, respectively.
Which is why that middle model is the one in all the colours.
Yes, $50 was an example - you get the point. They're also not going to sell just 1 million units. And who says that Micro$ofts cost is the same or even similar to Apples cost for their HDD based units? I would have thought that their PPU was higher considering the lack of economies of scale.
Quote:
Originally Posted by slughead
Uh.. at $230, there probably wouldn't be a loss.
As we can see from Apple's profit margins, M$, even without the same economy of scale, could probably sell it at a lower price and still make a profit.
Even if they do take a loss, it's not going to be $50, that'd just be nuts.
Oh that'd be funny. Apple's not going to give out their receipts, so the Zune would have to tap into itunes on the client machine to find out how much music people bought... I think it'd be just a few days until people made M$ think that they'd purchased every song on iTMS by hacking the itunes library.
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Back to the article, The breakdown also didn't include the price of labor.
What? Like movie studios selling movies online will never happen because it'd only be a couple of days before someone learnt how to copy them? Don't underestimate the inability of the AVERAGE user - clearly, the people here are not average users.
Comments
Actually Gizmodo says the final Zune price is USD 229.99. Which is quite a bit cheaper then the equivalent iPod
I'd hardly call $20 "quite a bit cheaper."
Without factoring other costs such as development, manufacturing, freight, and marketing, the analyst said his BOM totals imply gross margins of 49.7 percent, 50.8 percent and 42.2 percent, respectively.
Which is why that middle model is the one in all the colours.
Uh.. at $230, there probably wouldn't be a loss.
As we can see from Apple's profit margins, M$, even without the same economy of scale, could probably sell it at a lower price and still make a profit.
Even if they do take a loss, it's not going to be $50, that'd just be nuts.
Oh that'd be funny. Apple's not going to give out their receipts, so the Zune would have to tap into itunes on the client machine to find out how much music people bought... I think it'd be just a few days until people made M$ think that they'd purchased every song on iTMS by hacking the itunes library.
------
Back to the article, The breakdown also didn't include the price of labor.
What? Like movie studios selling movies online will never happen because it'd only be a couple of days before someone learnt how to copy them? Don't underestimate the inability of the AVERAGE user - clearly, the people here are not average users.