Apple's new iPod Shuffle has had a bit of controversy, ranging from its lack of physical buttons, restricted headphones, to the sheer (lack of) size of the device. This, certainly, isn't going to provide any good free advertising either. According to BusinessWeek, the latest iteration of Apple's smallest iPod only costs a mere $22 to create, but how much does it retail for? $79.That's right, you're being charged almost an extra $60 to own one of these tiny creations, which to some people is an amount that is unacceptable. The main application chip of the Shuffle, which runs music controlling and other functions, is worth $5.98. To quote iSuppli analyst Andrew Rassweiler, "It's almost like six dollars worth of flash memory tied to some flash and a battery and not much else. It's very basic and downsized." As the BusinessWeek article states, "All told, the cost of the shuffle's components, the headphones, and the packaging it ships in comes to $21.77, according to iSuppli's estimates."
This suggests that, as many people assume, if the markup on this is that high, then others will be the same. For example, for the first iPod touch, manufacturing costs were $147 whereas retail prices were $299.
















Also, maybe you skipped that :
[/quote]iSuppli's calculations consider only the actual parts of the device and do not include research and development, manufacturing, distribution, and patent royalty costs.[/quote]
It costs MS $4,000AU to do the packaging for Windows Server 2003?
Somehow I doubt that.
Lies! Companies making profits? What is this crazy talk!
Its called not being rich "people"
Somehow I doubt that.
Don't you understand - every cd/dvd that is sent out has been personally tea-bagged by Bill Gates and Steve Balmer themselves.
Somehow I doubt that.
Vista cost 10 billion USD to make presuming Windows 2k3 took slightly less it doesn't look like a bad deal
Microsoft are thieves!! They should charge $20 for Vista!!!!!11111
Development costs are invisible to the eye, but it's the thing that costs the more and by far if I'm not mistaken.
Compare it to how much profit MS make on the Zune or something sensible, not some arbitrary bulls*** figure you feel like using for trolling
Microsoft are thieves!! They should charge $20 for Vista!!!!!11111
Development costs are invisible to the eye, but it's the thing that costs the more and by far if I'm not mistaken.
Thats software, not hardware
Microsoft are thieves!! They should charge $20 for Vista!!!!!11111
Development costs are invisible to the eye, but it's the thing that costs the more and by far if I'm not mistaken.
Thats software, not hardware
maybe it will force other companies to pull their finger out of their bums and make something NICE for a change (e.g. upcoming Zune HD)
if i made something incredible, i'd charge a crapload for it - and laugh all the way to the bank when after at LEAST five years, no other company in the WORLD was able to make something even remotely as desirable.
if i made something incredible, i'd charge a crapload for it - and laugh all the way to the bank when after at LEAST five years, no other company in the WORLD was able to make something even remotely as desirable.
LOL @dewaaz. IPOD Shuffle verbs; incredible, desierable
Seriously, you need to chill.
Idk who would actually buy that shuffle, especially when you're giving Apple a bunch of free money with it.
maybe it will force other companies to pull their finger out of their bums and make something NICE for a change (e.g. upcoming Zune HD)
if i made something incredible, i'd charge a crapload for it - and laugh all the way to the bank when after at LEAST five years, no other company in the WORLD was able to make something even remotely as desirable.
what i meant was that people obviously love ipods, and they DO sell well
so yes, the most popular MP3 player in the world MUST be incredible to be so successful.
just cos one r two of you like other things, you can't take away from the fact that the ipod is probably one of the greatest products made in the last 10 years.
deal with it. and profit to the genius(es) who made it.
and no i don't have an ipod... but i respect it for being a wildly successful product - and the fact that no other company can compete in the slightest
what i meant was that people obviously love ipods, and they DO sell well
so yes, the most popular MP3 player in the world MUST be incredible to be so successful.
just cos one r two of you like other things, you can't take away from the fact that the ipod is probably one of the greatest products made in the last 10 years.
deal with it. and profit to the genius(es) who made it.
and no i don't have an ipod... but i respect it for being a wildly successful product - and the fact that no other company can compete in the slightest
Dude, learn to spell.
If I were you. I'd read again. This is not my space.
1st generation Ipod touch production, about $150
1st generation Ipod touch consumer price: about $300
This makes the consumer price 2x higher than the production cost.
Now let's look at the ipod shuffle
iPod shuffle production: about $20
iPod shuffle consumer: about $80
That makes the consumer price 4x higher than the production cost. It's a big profit, enough that it's too much.
yeh but it's not apple, so it doesn't count. 8-)
The PS2, PS3, and Xbox 360 were all sold at a loss when they were first released. The PS3 could possibly still be sold at a loss.
Some people like to know how much of their money goes to the product, and how much goes towards Steve's next new boat. In this case it's way over half for the latter.
Does the shuffle come in a fancy plastic box?
Or paying $100 for a $3 CD with Windows on it?
Do so many Neowinians not understand manufacturing and profit?
Apparently there are quite a few who don't get manufacturing and profit.
Apparently there are quite a few who don't get manufacturing and profit.
Look up.
The point is over your head.
Manufacturing an item is more than just crapping it out of thin air. You need a factory. There must be machinery designed and programmed to work in said factory. The iPod (or any other item) must be engineered and designed, itself, to even be produced.
C_Guy, I think you are putting me on and are deliberately being obtuse to get a reaction.
+1
+2
Too bad its bloody slow if you have a large library and didn't use mtp to transfer them to the device. The shuffle is stupid, honestly, if you've got that little music you might as well use a phone or a cd player.
i got a e200 series (e250 (2GB) to be exact with a Sandisk 8GB MicroSDHC card. total space = 10GB) running 'Rockbox' (www.rockbox.org) and it's far superior to any Apple product at a almost dirt cheap price! (and yes, i know some Apple products support Rockbox.. but even if they do your still paying roughly twice the price for the Apple device as you would be for a e200 series device)
Sansa has a user-serviceable battery, a 'standard' MicroSDHC slot (supports up to 32GB with Rockbox. only 2GB (or so) with Stock Firmware) where as Apple dont have either of those to my knowledge.
bottom line = stuff like Sandisk Sansa e200 (v1) are far better than overrated/overprice Apple products.... only suckers buy Apple DAP's (Digital Audio Players) that are not informed and just get it because 'everyone else is doing it' lol (they just assume since everyone else has it that it must be the best. im not saying Apple products are bad but when you factor in cost vs other players they immediately are a turn off to me and most other people that dont have money to burn. even if i did have money to burn i would still not buy them when you can basically get a superior product (i.e. Sandisk Sansa e200 series) at a cheaper price.
p.s. also... Rockbox has it's own USB and Battery Charging now which was added semi-recently to Rockbox.... so you dont even need the original Sansa firmware at all now (it's still there if you need it though by pressing and holding the left button on d-pad when you power it on) ... and now you can directly transfer files to the MicroSDHC card where as before the only way Rockbox could use a MicroSDHC card was to transfer files to the e200's internal memory and then use rockbox itself to transfer from the internal memory to the external memory slot.
Last edited by ThaCrip on 14 Apr 2009 - 16:37
Apple in general is over priced. The seeds that were planted to grow that apple tree that steve jobs took a bite out of cost more then the seads we normally buy.
people who spend that much money on clothes are crazzy
people that are gullible and do buy it will probably just put mp3 on that they downloaded from a torrent site and make back what the spent on the $22, sorry I mean $79 iPod Shuffle
Last edited by timster on 14 Apr 2009 - 03:55
of what? owning a peace of plastic with medal and you are focrced to use apples own headphones
Sugar buns - don't like it, don't buy it.
Why don't you run along to your gay hating that you did in RWI - your expertise is in bigotry - not technology.
The Apple ones tend to be the ones that people are interested in, and I use Apple products and Microsoft products so I'm not biased :p I just thought people would be interested in how much they mark it up, compared to normal. *shrug*
It would be interesting to see if other companies are "stealing" our money too. I know that Sony is loosing money on every PS3 they sell, but what about Microsoft and their Zunes?
True. I'm excited about the prospects of OLED, though... e-paper!
yeah OLED is nice, its soon to replace LCD and later LED (but it may work together with LED, so we'll have both OLED and LED)
its the internet. Thertes tons of drama on it
Woah there. calm down
Last edited by 120 on 14 Apr 2009 - 20:20
I for one an disgusted at this startling revelation!
There's nothing wrong with Apple selling at high prices. Now those buying I'm sure they have their reason.... O.o
It's totally reasonable to say that a product is overpriced, but it makes no sense to misconstrue the overall cost of a product based on an incomplete figure.
Companies can charge whatever they want. If you don't think the price is worth it then don't buy it simple as that.
Newsflash: Everything is 'Over priced' if companies sold things at the cost of the parts they would have no money in which to re-invest in developing new products.
I think the Shuffle is a waste of money and I think for what you get it costs a lot. Would I buy it? Not in a million years, I'd rather buy a Zune, or a jar of cancer, in-fact yeah the cancer sounds good. I wouldn't want the stigma of owning a Zune.
Companies can charge whatever they want. If you don't think the price is worth it then don't buy it simple as that.
Newsflash: Everything is 'Over priced' if companies sold things at the cost of the parts they would have no money in which to re-invest in developing new products.
I think the Shuffle is a waste of money and I think for what you get it costs a lot. Would I buy it? Not in a million years, I'd rather buy a Zune, or a jar of cancer, in-fact yeah the cancer sounds good. I wouldn't want the stigma of owning a Zune.
[troll type="sarcasm"]
Buy an iPod, it's slightly cheaper than the Zune in the long run... Because with the Zune, you'll end up losing your friends, your bank wont lend you money, and you will get beaten up, and the hospital charges will eat you up! All of this because you own a Zune, and people hate you for it... I mean, brown?
[/troll type="sarcasm"]
Aswell as the cost of the product, included into that product is the wages for the staff who sell them and transportation costs of getting them to the right people.
So what? A lot of companies do. Let's stop reporting on how much it costs to make something.
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