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Re: [News] [Rival] Apple Ripoff Shows That Price is Unrelated to Quality

____/ chrisv on Tuesday 03 July 2007 21:27 : \____

> Roy Schestowitz wrote:
> 
>>____/ Rick on Tuesday 03 July 2007 17:06 : \____
>>
>>> On Tue, 03 Jul 2007 14:32:23 +0100, Roy Schestowitz wrote:
>>> 
>>>> Taking the iPhone Apart
>>>> 
>>>> ,----[ Summary
>>>> | An analysis from teardown firm Portelligent estimates that the new |
>>>> smartphone costs Apple a mere $220 to make `----
>>>> 
>>> 
>>> ... how much did it cost to develop and market?
>>> (snip)
>>
>>Yes, I didn't forget about that. However, the margins seems obscenely high.
> 
> $220 manufacturing cost -> $600 selling price is not obscenely, or
> even unusually, high-margin.  I believe a 1 to 4 ratio is actually
> quite common.  The distributors and retailers all take their cut, you
> know...
> 
>>This was mentioned months ago, but it was speculative. If you look at
>>consoles, the only one not selling at a loss is Wii, which is /also/ by far
>>the cheapest.
> 
> As I'm sure you know, consoles are an entirely different business
> model.

iPhone has a 'long term' (subscription) as well.  Think how many providers out
there give out phones for virtually free.

-- 
                ~~ Best of wishes

Roy S. Schestowitz      |    #ff0000 Hot Chilli Peppers
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