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Why Nobody Can Match the iPad’s Price

wired.com

21–30 of 114 posts

Re: Why Nobody Can Match the iPad’s Price

#21

"Apple is the most vertically integrated company in the world." I struggle to see how that statement could be true for a company that outsources all of its manufacturing.

Apple 'outsources' all of its marketing to TBWA\Chiat\Day but that doesn't affect the quality of the output, or their control over what gets produced.

Just because they don't own the tools doesn't mean that they aren't telling people exactly how to use them.

Re: Why Nobody Can Match the iPad’s Price

#22
post #21

"Apple is the most vertically integrated company in the world." I struggle to see how that statement could be true for a company that outsources all of its manufacturing.

Apple 'outsources' all of its marketing to TBWA\Chiat\Day but that doesn't affect the quality of the output, or their control over what gets produced. Just because they don't own the tools doesn't mean that they aren't telling people exactly how to use them.

Of course. I'm simply saying it makes them less vertically integrated.

Re: Why Nobody Can Match the iPad’s Price

#23
post #16

The Notion Ink Adam is cheaper... Notion Ink Adam with LCD & WiFi (no 3G) - $375 USD Notion Ink Adam with LCD, WiFi & 3G - $425 USD Notion Ink Adam with Pixel Qi display & WiFi (no 3G) - $499USD Notion Ink Adam with Pixel Qi display, WiFi & 3G - $549 USD

The iPad is available to purchase.

Re: Why Nobody Can Match the iPad’s Price

#24
post #15

> "Designing in-house means Apple doesn’t have to pay licensing fees to third parties to use their intellectual property. For instance, the A4 chip" Isn't the A4 an ARM + PowerVR and doesn't Apple pay design licenses on both those?

More than just licensing the tech, Apple buys the companies who make it. Apple owns Intrinsity, which designed the A4 processor. Apple also owns P.A. Semi, which contributed to the A4 SoC. Apple partially (10%) owns Imagination Technologies, the makers of PowerVR.

Re: Why Nobody Can Match the iPad’s Price

#25

"Apple is the most vertically integrated company in the world." I struggle to see how that statement could be true for a company that outsources all of its manufacturing.

The wording here is "most" There was an article written in 2006 saying "Designed By Apple in California. Made in a sweat-shop in China." (http://blogs.siliconvalley.com/gmsv/2006/06/designed_by_app....)

Architecturally wise they are vertically integreated with all their in house hardware and software but I dont think anyone can argue that their manufacturing practices dont help that statement.

Re: Why Nobody Can Match the iPad’s Price

#26
post #5

I feel a lot of other companies are riding the tablet wave. Why would motorola underprice the Xoom when possibly they could make a killing on selling the next "iPad" killer. If its true that Apple is sitting on a pretty price margin on the iPad, then the Xoom, I feel, wouldent be to far off. If they had to they could lower the price to gain momentum but so far this is Motorolas first good tablet release and I dont th…

Apple locked down the 10" screens lcd market, why do you think samsung went with a 7"?

Re: Why Nobody Can Match the iPad’s Price

#27
post #5

I feel a lot of other companies are riding the tablet wave. Why would motorola underprice the Xoom when possibly they could make a killing on selling the next "iPad" killer. If its true that Apple is sitting on a pretty price margin on the iPad, then the Xoom, I feel, wouldent be to far off. If they had to they could lower the price to gain momentum but so far this is Motorolas first good tablet release and I dont th…

Apple locked down the 10" screens lcd market, why do you think samsung went with a 7"?

Apple definetly holds a dominant hold on the 10" tablet market and the Samsung Tab took a stab at the market with their 7" and did ok. I feel Motorola is taking a brave stance here by trying to tackle the 10" market. As another comment in here points out, "wifi-only Xoom to be priced at $600" so there is competition when it comes to the "Nobody Can Match the iPad’s Price". (http://arstechnica.com/gadgets/news/2011/02/motorola-xoom-ta...)

Re: Why Nobody Can Match the iPad’s Price

#28

One factor that the author doesn't mention is Apple's success at lining up deals with component manufacturers. A couple years ago (before anyone had heard of the iPad) they locked in great prices on flash memory and LCD displays. They could do that because they were about to invent a huge market, and they knew it. Anyone trying to get into the tablet business in 2010 had to pay much, much more. Steve Jobs and Johnny…

A hundred upvotes, really. Tim Cook turned Apple from a sloppy, cluttered mess to a perfectly tuned and calibrated machine. He designs business processes like Ive designs hardware enclosures. He's still at it, too, telling investors during the last earnings call that Apple once again snapped up a boatload of supply on an unnamed type of component . I bet he'd be amazing at Starcraft, once he learned the ropes.

Getting some pictures of him wiping out some Korean Starcraft nerds :)

Re: Why Nobody Can Match the iPad’s Price

#29
post #20

Earlier quoted context omitted.

That's still $100 more expensive than the cheapest WiFi iPad and only $29 cheaper than the cheapest WiFi + 3G iPad.

and it's competing with a product announced over a year ago, not the next generation of iPad due any day now.

For that extra $100 you get 2 cameras, dual core instead of single core processor, 1gb ram instead of 256mb ram, 1080p instead of 720p, 1280 resolution instead of 1024, android 3.0 (built for tablets) instead of ios 4, expandable storage up to 32gb microsd, flash support, hdmi, usb 2.0, gyroscope, 4g (for the more expensive model), and a motherfrackin' barometer :)

And by the way there are perfectly good android tablets already available for around half the price of the cheapest ipad. You can already run android 3.0 on a $249 nook color.

Re: Why Nobody Can Match the iPad’s Price

#30
This article didn't get the prices right (which is suprising since that was the sole point of the article), and it got the history exactly backward.

The main shock people had about the ipad was how expensive it was priced ($500-$750). They weren't 'surprised' at how low it was priced. And to Apple's credit, we now know that even at that price it would sell well, and also we know that this price is actually not so unreasonable or inflated as we thought, because other major manufacturers making comparable quality tablet products are also in that price range (except for the nook color, notion ink adam, archos 101 and 70, or several no-name tablets).

Also, the xoom is $600 compared to the old ipad's price of $500. If you want to compare the $800 xoom with 3g (and 4g), compare it with the $750 ipad with 3g. So the prices are not so different.

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