The 3G/GPS system requires a daughter board, visible in the FCC photos (see iFixit.com). The circuitry is very likely identical to that in an iPhone, so that no new programming, or very little, is needed. Apple's gross margin on devices is around 46%, so a cost of around $65 for the board, chips, assembly, RF window machining on the case, software support, etc., is likely. This would lead to the $130 retail price. Considering the unsubsidized prices of 3G cellphones, this seems to be in line with current costs.
Apple is not making these - or any other - devices out of the goodness of their hearts. They want to make profitable devices that will find a large enough market. If you find yourself outside that group of customers, that remains your problem, not Apple's. You would only have to save up 82,900 pennies (plus tax) to get the most capacious model. Get a couple of mason jars.
I wasn't protesting the price for the 3G version, I was just curious as to why it was such a premium.
Thanks to everyone who helped to answer my question!
I doubt I would buy the 3G version, especially if I already had an iPhone. What's more valuable to me is storage and I think I may wait for the 2G iPad and get the biggest version available at that point.
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So... when is the 3G gonna hit the retail stores?
This is what I want to know as well.
The 3G/GPS system requires a daughter board, visible in the FCC photos (see iFixit.com). The circuitry is very likely identical to that in an iPhone, so that no new programming, or very little, is needed. Apple's gross margin on devices is around 46%, so a cost of around $65 for the board, chips, assembly, RF window machining on the case, software support, etc., is likely. This would lead to the $130 retail price. Considering the unsubsidized prices of 3G cellphones, this seems to be in line with current costs.
Apple is not making these - or any other - devices out of the goodness of their hearts. They want to make profitable devices that will find a large enough market. If you find yourself outside that group of customers, that remains your problem, not Apple's. You would only have to save up 82,900 pennies (plus tax) to get the most capacious model. Get a couple of mason jars.
I wasn't protesting the price for the 3G version, I was just curious as to why it was such a premium.
Thanks to everyone who helped to answer my question!
I doubt I would buy the 3G version, especially if I already had an iPhone. What's more valuable to me is storage and I think I may wait for the 2G iPad and get the biggest version available at that point.