iPad Costs Only $229 to Produce?

[GreyianStorm]

Buzzi said:

WiiStation360 said:
I did a breakdown of the Materials/manufacturing cost for Modern Warsfare 2, it costs $1.76 to produce the game box, game art and disk. And they are selling it for $60? What a ripoff! that is over 30x the cost to produce it!! Activision products are overpriced!

I wonder if there is something missing from my analysis. Oh wait, it is the massive R&D cost for developing the product in the first place. Along with ongoing support costs for supporting the infrastructure, advertising budgets and customer support. Oh, and profit, which all companies love.

What if Activision would sell MW2 at 60$ after it went budget just enlarging the game box and changing the font of the manual? That's pretty much what Apple is doing...We are not blaming them for making profit (thet is what a company has to do) but for selling something useless and without anything which makes it better than a laptop, while it's obviously worse than an iPod.

That may be the worst analogy I have ever heard. Making MW2's box bigger and changing the font doesn't make the game any better, or the experience. Making the screen bigger on the iPhone, to the same size as the iPad, makes it easier to type, read or do pretty much anything on. If you want a proper analogy, use something like TVs. A 50 inch TV is just a bigger version of a 32 inch TV. Does that mean it's useless? No, they're made because they are better.