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sdy284

Apple makes $208 minimum on each iPad

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I cant imagine the profit margin on a Ipod touch etc. Those are way over priced.

 

 

^+1 apple has always been known to be insane with their prices

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Sounds the wii and Iphone all over again (as expected)

 

The Wii? :O

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Sounds the wii and Iphone all over again (as expected)

The Wii's profit was marginal at launch, it's just that it was the first console to ever turn a profit, which is why it seemed bigger than it really was.

 

As for the iPad, that's just insane. I wonder how many people would still buy it if this information was presented to them. If people refused to buy it at launch, you'd be sure that the price would be cut substantially, but although individual persons may be smart on occasion, people as a group are complete morons, so that'll never happen.

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The Wii? :O

yeah the wii was/is overpriced. It debuted and nintendo straight profitted because of the garbage hardware it's running. (unlike the 360 and Ps3 who sold at a loss)

It wasn't that much (like you said Clay) but it still ticked me off

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This is typical populist news served on a silver platter for the numerous people on the web who hate Apple for ridiculously overpricing their products (which I tend to agree with most of the time).

 

However, whoever wrote the article completely fails at recognizing what costs are associated with product development. Yes, calculating JUST the production and raw material costs will add to whatever numbers they have in there. However, add the whole developing of the software, developing a large multi-touch LCD screens, etcetera etcetera and the production costs are significantly higher.

 

While these development costs are extremely hard to calculate exactly, as the OS is an adapted iPhone OS (I guess, I haven't read anything about the iPad, not interested) which has been developed / in-development over a couple of years.

 

 

I recon Apple might be breaking even or even making a slight loss at the start, just to gain the market share, but I recon once they reduce the amount of production error that is bound to happen at the start of any production, they will be making a comparably huge profit margin.

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While these development costs are extremely hard to calculate exactly, as the iPad is an adapted iPhone (I guess, I haven't read anything about the iPad, not interested) which has been developed / in-development over a couple of years.

 

fixed for accuracy

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