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Forums - PC Discussion - iPad Costs Only $229 to Produce?

WiiStation360 on 11 February 2010
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.

It's main purpose it email/web.  What makes it worse than an iPod?



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Username2324 on 11 February 2010

Not surprised at all...

In another couple months you will see a $100-$150 price drop across all models with early buyers getting $100-$150 Apple credit. Just like the iPhone.



theprof00 on 11 February 2010

That makes sense. All apple hardware retails for about double what it costs.



Wiped on 11 February 2010

Those margins are very slim actually. No, really. It's widely known that retailers take a HUGE chunk at the tills, it's their incentive to stock things. Expect Apple to be taking less than $100 per iPad from the leftover margins. And then there's shipping and tax to deduct from the price, too.

Don't talk shit about greedy companies when you don't know the way the market works.



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Buzzi on 11 February 2010
WiiStation360 said:
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.

It's main purpose it email/web.  What makes it worse than an iPod?

The fact that it's not portable...and if you just want to email or surf the web with a large screen you can buy an Ubuntu laptop for 150$.

(Ubuntu is better than OS-X, trust me!)



CURRENTLY PLAYING: Xenoblade (Wii), Super mario 3D land (3DS), Guild Wars (PC)

 

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nightsurge on 11 February 2010
c0rd said:
V-r0cK said:
Vanbierk said:
I don't know if you knew this before...but all apple hardware is marked up quite a bit, doesn't matter what it is, if it's got the apple logo, it's marked up. If people want it, they pay that marked up price without question to support them.

I know some of Apple's products are rediculously overpriced but some seems to be a bit more reasonable.  I just thought the iPad was more along the line of a higher end netbook due to the price, but now i see it as equivalent to the low end netbooks. 

I actually believe some people dont know that Apple's products are overpriced.  Apple's created themselves this image that their products are all high-end (due to appearance and price), so some people feel when they want to get the good stuff they buy Apple.  One of my friend just bought a Mac laptop for this reason eventho i've told her Apple overprice, but maybe if i show her this chart she'll finally be more convinced.

Generally, I think its very useful if consumers know how much of a profit or loss a product makes.

When you say overpriced, what do you mean? Relative to the competition?

Apple is not just selling computer parts, they're giving you an overall package. You're essentially paying for their ideas, which is not unlike how Nintendo runs their business. How ridiculous would it be if we compared the budgets of Nintendo games, and the budgets of GTA and Call of Duty, and tell the Wii/DS majority that they're getting ripped off?

Now, I understand that in the case of these Apple products, it's not exactly the same, but the user experience does matter (where Apple puts a lot of focus into). People aren't just mindless sheep that buy things because they see an Apple logo on it,

I stopped reading right there.  Because that is EXACTLY what most Apple customers are.  They buy up all the highly exaggerated and misrepresented advertising as fact, and they actually believe that the Apple products with their OS make them somehow better at designing things.  I don't know how many times people with Art interests buy Macs simply because they are mindless sheep that think Macs are the better device for Art.  Too bad most professionals even using Macs still use the standard Adobe Suite that runs on PC as well... You could buy a PC with twice the power for the same price as the Mac and really be churning out that Artsy stuff, but these people are clueless and buy into anything Apple says on TV.



WiiStation360 on 11 February 2010
Buzzi said:
WiiStation360 said:
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.

It's main purpose it email/web.  What makes it worse than an iPod?

The fact that it's not portable...and if you just want to email or surf the web with a large screen you can buy an Ubuntu laptop for 150$.

(Ubuntu is better than OS-X, trust me!)

I hate having to defend the iPad, when I have zero desire to purchase one, ( I would rather have a netbook) but:

1. How is 1.5lbs not portable?
2. Where can I get a $150 ubuntu laptop?  Are you referring to the OLPC XO-1?
3.  Ipad does not even run OS-X



Simulacrum on 11 February 2010

 



 

 

Take my love, take my land..

WiiStation360 on 11 February 2010

@Simulacrum

To continue the comparison.  Besides battery life, the iPad stacks up pretty well.

  IPad HP TC1100 Rosetta Stone
Weight 1.5lbs 4.0lbs 1,676 lbs
Battery Life 10 hours 2.5 hours Infinate
Launch Price $499 $2577 Priceless


Username2324 on 11 February 2010
Wiped said:
Those margins are very slim actually. No, really. It's widely known that retailers take a HUGE chunk at the tills, it's their incentive to stock things. Expect Apple to be taking less than $100 per iPad from the leftover margins. And then there's shipping and tax to deduct from the price, too.

Don't talk shit about greedy companies when you don't know the way the market works.

You do realize that the majority of Apple products are sold from Apple's website and Apple stores. Very little is sold by other retailers, why do you think Apple shares are $200 a piece and they are one of the only companies showed growth in profit in 2008 and 2009? It wasn't on slim margins I can tell you that much...