The Apple Announcement Thread: iPad2?

[Grimes]

Squilliam said:

Grimes said:

Squilliam said:

All in all looks like a good upgrade to the iPad. Theres no reason to expect major changes this round given they go through a tick tock product cycle. It is funny though how Apple are known for large margins on hardware and yet all the iPad competitors thus far that I have seen have been more expensive!

It helps when you have $50 billion in cash and order quantities in the tens of millions. Apple can order on a scale other companies can't match which gives them a huge pricing advantage.

Actually it is because they're taking a console approach.

• 30% on games.
• 30% on apps.
• Advertisement.
• 30% on content subscriptions.
• 30% on books.

So they make it up with the money people spent. Given the range of subscriptions people could easily give them on average another $100 in revenue on top of the device itself. Other tablet makers cannot do this because they are selling just the hardware with a third party OS.

I'm pretty sure most of their profit still come from hardware sales and carrier subsidies. The content profit is the cherry on top.