According to iSuppli Corporation, Apple Incorporated’s iPods traditionally have been sold at retail pricing that is about twice the level of their hardware Bill of Materials and manufacturing costs. The iPod touch is no exception. The 8GB version of the iPod touch carries a BoM cost of $149.18, based on pricing in October. When adding the iPod touch’s direct-conversion cost of $5.86—consisting of manufacturing, assembly and test expenses, the total cost is $155.04. The 8GB version of the iPod touch sells for $299, meaning the price is nearly double its materials and manufacturing cost, at 92.9% higher. As usual, these estimates are strictly limited to expenses for components and other materials and manufacturing, and do not include costs for software, intellectual property, accessories and packaging, or research and development costs.
“The iPod touch likely represents the future of the high end of the iPod line. Click Wheel-interface and Hard-Disk Drive (HDD)-based versions of the iPod are expected to wane in favor of touch-screen and flash-memory-equipped models like the iPod touch. But despite its functional and physical outward resemblance to the iPhone, and the fact that its internals borrow heavily from the iPhone, the iPod touch is no iPhone clone, and has its own unique design,” said Andrew Rassweiler, teardown services manager and principal analyst for iSuppli.
Word. For $249, you can get a Zune 80. 10 times the storage, a better interface, and built-in radio. All for $50 less. Plus, it's better-looking. Don't succumb to buying a stripped-down iPhone.
Last edited by neufuse on 20 Dec 2007 - 18:15
Word. For $249, you can get a Zune 80. 10 times the storage, a better interface, and built-in radio. All for $50 less. Plus, it's better-looking. Don't succumb to buying a stripped-down iPhone.[/quote]
You can't compare the zune80 to the touch, if you are comparing to hard drives, then do it to the classic which wipes the floor with the zunes storage. Interface, thats very debatable, and down to personal opinion
Last edited by neufuse on 20 Dec 2007 - 18:15
You pay $200-400 for Windows, which I think is overpriced for what you get, so what's the difference?[/quote]
Uhhhh.. one is an operating system, the other is hardware?
Last edited by neufuse on 20 Dec 2007 - 18:16
You pay $200-400 for Windows, which I think is overpriced for what you get, so what's the difference?
Uhhhh.. one is an operating system, the other is hardware?
Last edited by neufuse on 20 Dec 2007 - 18:16
I bet the Zune is similarly "overpriced." I think these kinds of articles are dumb because they do not take into account development costs and fabrication costs. Just hardware.
For $249 you can get an iPod Classic 80GB. As to which one is better, i think it is a matter of personal opinion.
Last edited by neufuse on 20 Dec 2007 - 18:16
Word. For $249, you can get a Zune 80. 10 times the storage, a better interface, and built-in radio. All for $50 less. Plus, it's better-looking. Don't succumb to buying a stripped-down iPhone.
I bet the Zune is similarly "overpriced." I think these kinds of articles are dumb because they do not take into account development costs and fabrication costs. Just hardware.
For $249 you can get an iPod Classic 80GB. As to which one is better, i think it is a matter of personal opinion.
They also do not take into account marketing, packaging, and support. The guy at best buy who sold you the thing gets a pay check too.
Last edited by neufuse on 20 Dec 2007 - 18:16
Word. For $249, you can get a Zune 80. 10 times the storage, a better interface, and built-in radio. All for $50 less. Plus, it's better-looking. Don't succumb to buying a stripped-down iPhone.
You can't compare the zune80 to the touch, if you are comparing to hard drives, then do it to the classic which wipes the floor with the zunes storage. Interface, thats very debatable, and down to personal opinion
Yeah, but once you jailbreak it, the ipod touch can have all the iphone apps, and everything. so wtf should I get a Zune, when I can get an ipod touch, that lets me do 10x more, IRC web browseing, IM, and more.
Last edited by neufuse on 20 Dec 2007 - 18:17
You pay $200-400 for Windows, which I think is overpriced for what you get, so what's the difference?
Uhhhh.. one is an operating system, the other is hardware?
vista took 7 years to develop, how long tdid the ipod take again (i have to agree with raid on that one) and yeah i never cliamed MS overproced windows, but when i buy an MS game it costs the same as any other game on the market, they dont charge more simply because it is an MS game. if i buy MS hardware e.g. keyboard, mouse it is not more than the rest of the market, however apple stuff is alwasy more expensive than a comparable product, hell if the made games theyd cost twice as much as the rest of the games on the market, but you did hit the nail on the head PROPREITRY, this is the main reason i hate apple and the only reason it is soooo expenisve, people have this false idea that apple stuff is just better because it is propritetry, when in reality, it is not that much differnet to other comparable products, however the propritry nature means it is a lot less flexible.
Last edited by neufuse on 20 Dec 2007 - 18:17
You pay $200-400 for Windows, which I think is overpriced for what you get, so what's the difference?
Uhhhh.. one is an operating system, the other is hardware?
Problem I find is that OS X is only available on Macs, which are basically overpriced computers. If I have to buy an overpriced OS, fine. But overpriced OS + PC? Where's the win in that?
It's all about choice though. I'd really like my dollar to go a lot further. Don't care a bit whether it's super compact, trendy, or no viruses (or games* for that matter).
* Games I want.
Last edited by neufuse on 20 Dec 2007 - 18:17
Word. For $249, you can get a Zune 80. 10 times the storage, a better interface, and built-in radio. All for $50 less. Plus, it's better-looking. Don't succumb to buying a stripped-down iPhone.
You can't compare the zune80 to the touch, if you are comparing to hard drives, then do it to the classic which wipes the floor with the zunes storage. Interface, thats very debatable, and down to personal opinion
How does an 80GB iPod "wipe the floor" with an 80GB Zune with storage? Does Apple have a numeric system different than the rest of the world?
Last edited by neufuse on 20 Dec 2007 - 18:17
the whole world isnt american !!!
Is this news article mis-titled?
p.s. the same rioja costs the supermarket almost 2 times less.
People like myself will keep buying Apple's products the same way we buy good wines because they are good.
Seriously, is this a news story or just an option to cause trolling?
Last edited by .kvn on 19 Dec 2007 - 21:45
Its 100% markup on parts if you buy from Apple direct...
The fact is the price is parts Apple buy and cost to assemble... it has also been researched, developed, designed, packaged, shipped around the world, sold to a shop (who then markup 50% at least normally).
If you do the maths and presume shops do markup 50% to get $300, then Apple sell to shops at $200... $155 of this is parts and manufacturing. So this then means Apple researched, developed, designed, packaged, and shipped around the world your iPod for $45, and go a few dollars profit left over.
So whats the big rip off scam everyone is shouting about?
(On a side note using the same above logic if they did sell for $225 and the shop had marked up the product by 50%, Apple would be selling a product to shops for $150.... even if Apple ignored all research, packaging etc. they would still be loosing money on every iPod they sold to retailers.)
Its 100% markup on parts if you buy from Apple direct...
The fact is the price is parts Apple buy and cost to assemble... it has also been researched, developed, designed, packaged, shipped around the world, sold to a shop (who then markup 50% at least normally).
If you do the maths and presume shops do markup 50% to get $300, then Apple sell to shops at $200... $155 of this is parts and manufacturing. So this then means Apple researched, developed, designed, packaged, and shipped around the world your iPod for $45, and go a few dollars profit left over.
So whats the big rip off scam everyone is shouting about?
(On a side note using the same above logic if they did sell for $225 and the shop had marked up the product by 50%, Apple would be selling a product to shops for $150.... even if Apple ignored all research, packaging etc. they would still be loosing money on every iPod they sold to retailers.)
before you go on about R&D costs (which include researched, developed, designed, packaged) of the ipods etc, consider first how many have they sold, milions, lets just assume it is 1 million take out shipping which i iwill assume costs like 10 MAX per pod, and your looking at 35 million of R&D (minimum which is spread across a numebr of products, i.e. half the R&D in the iphone is used in the ipods too), hahah yeah right, i work for an R&D company an i can tell you stuff dont cost that much to R&D.
When you look at the numbers in depth it looks about right for profit imo.
Who complains FCUK make clothes for a couple of pounds in the UK and sell them for £100+ sometimes? No-one.
Im not even a huge fan of Apple or the iPod - I just think its them bashing a company for making profit. If you look at similar products from other companies they probably make just as much.
When you look at the numbers in depth it looks about right for profit imo.
Who complains FCUK make clothes for a couple of pounds in the UK and sell them for £100+ sometimes? No-one.
Im not even a huge fan of Apple or the iPod - I just think its them bashing a company for making profit. If you look at similar products from other companies they probably make just as much.
look at the numbers
Apple is expected to sell 9.1 million iPod touch units if those numebr are corect Apple could make about $1.54 billion in gross profit on FY08 iPod touch sales.
lets half that again, just to get rid of all those litlte things that add up the cost. so yeah they ARE making a lot of profit, especially for a technical product. we all know margins in the tech industry are pretty low
and yeah we ALL know brand name clothes are over priced, but thats not what the article is about
Apple doesn't go cheap. Quality costs money.
Besides, the standard "rule of thumb" ratio for Production Cost to Retail List Price is 7:1.
That's right, folks. If it costs me $10.00 to produce an item (assembly and materials), then in order for all the links in the chain to get paid, you will pay $70 for the same item.
You can mitigate some of these fees by eliminating various "middle-men" and financial types in the chain.
I think it's remarkable that Apple can make a profit with only a 25 point spread.
A quality product is a quality product. I don't cheap out on them. For the complainers who don't fit Apple's market demographic, either increase your disposable income accordingly, or get a lesser mp3 player.
By the way, the Touch does everything the iPhone does, sans the phone functionality.
Wrong. Apple removed more functionality of the iTouch to keep it more different - therefore not all applications of iPhone are on the iTouch - eg. Maps, Mail, Widgets, Weather are NOT on iTouch.
Last edited by Ikshaar on 19 Dec 2007 - 22:14
Most of what everyone is paying for is R&D cost, it blows, but that's how it works.
Hehe . .
heheh , and they cost twice as much once you put an apple logo on it
heheh , and they cost twice as much once you put an apple logo on it
That logo MEANS something.
Brand loyalty doesn't just happen.
heheh , and they cost twice as much once you put an apple logo on it
That logo MEANS something.
Brand loyalty doesn't just happen.
the logo is an apple with a bite out of it, you dont even get a whole apple
Where are my Notes, Mail, Stocks, Weather and Map apps?!?! And don't you tell me the touch shouldn't have at least the Notes app to separate it as an iPod. My freaking iPod nano Gen 2 had notes! (Yes I know, not editable but still).
heheh , and they cost twice as much once you put an apple logo on it
That logo MEANS something.
Brand loyalty doesn't just happen.
Yes, it means "bend over."
No, brand loyalty does not "just happen". But it doesn't happen simply by masking PC parts with an apple logo and jacking up the price either.
I'm sure as a self-proclaimed Apple "cultist" you could go on and on about why you love Apple. And I bet that somewhere in your speech you will tell us how Steve made you feel like you HAD to have this thing or that thing and how Apple's products are vastly superior for whatever reason... and their commercials are all true...
It is marketing that develops and strengthens brand loyalty. After all, what is a Mac? A PC masked with OS X and an Apple logo. What's an iPod? A music player masked with Apple's UI and logo. What's Apple TV? a hardware version of Media Centre with an Apple logo. I could go on. But Apple's loyal customers buy it because to them the logo represents so many things.
And it is those things that create brand loyalty... not merely slapping a logo on and jacking up the price. That is a luxury Apple can afford BECAUSE of brand loyalty.
Shock horror - company is in business to make money! More at 11!
...sad but true.
That, plus the fact that the damn thing isn't available in Canada. (You and me both, we sure as hell haven't ran into a single soul that can sell it up here without importing it from the States.)
On that same note, the only iPhones up here are also imports and, surprise surprise, they're unlocked. Who knows what Rogers will do to these iPhones once they get their hands on them. Oh let's see, we'll just swap out the media library with this gaudy looking piece of crap Java applet that encourages us to pay for poorly encoded tunes.
Come on guys, the quality of posting really needs to be checked, it's getting away from informative and enjoyable to simply pathetic.
Welcome to Neowin or net in general.
Anonymity breeds stupidity - if everyone online was trackable, identifiable and accountable to what they say and do, a lot of these "tough guys" would keep their quality opinions to themselves. Ah, we can only hope.
But in tech it is. Look at game consoles. They are sold near cost. Dell can sell a computer for $300. Except for luxury items like huge plasma displays and surround speakers, there is not a lot of markup on tech hardware products.
Unless you're Apple because, well, they feel you should have to pay big dollars for the 'Apple Experience' (The PC experience with a logo on top and half as many mouse buttons)
But in tech it is. Look at game consoles. They are sold near cost. Dell can sell a computer for $300. Except for luxury items like huge plasma displays and surround speakers, there is not a lot of markup on tech hardware products.
Unless you're Apple because, well, they feel you should have to pay big dollars for the 'Apple Experience' (The PC experience with a logo on top and half as many mouse buttons)
I couldnt agree with you more...
The thing is, that Apple fanboys will continue to pay these high prices, in the belief that it is a better product, or makes them elite.
Anyways and for the record, Apple products really don't sell really well in comparison with the competitor, for example Iphone sold less that nokia n95.
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