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Daring Fireball: Apple's Pricing Advantage

daringfireball.net

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Re: Daring Fireball: Apple's Pricing Advantage

#111
post #74

When I purchased my Apple machines I also took into account the cost of the tools I would be using the operating system. Macbook Pro + Xcode + Mac OS X vs Lenovo or Dell upper end model + Visual Studio + Windows 7 Visual Studio adds a considerable amount to the final cost, but I'm also willing to put down a fair amount more for having Mac OS X.

Can you also add the cost for becoming Apple Developer then?

Re: Daring Fireball: Apple's Pricing Advantage

#112
post #43
post #35

Earlier quoted context omitted.

At some point, you're paying a few hundred extra for the aluminum body and glowy Apple logo - it's not just about "premium" versus "consumer" tiers of hardware. A Latitude 5400 (again, same hardware loadout) prices on Dell's website right now at $849.00. A ThinkPad Edge 13", again, similar loadout, prices at $694.00. Apple makes fantastic hardware, no doubt, but it's very difficult to consider them to be competitivel…

I think the body is actually a pretty big deal. Who else is making unibodies like that?

Dell was selling one for a little bit: http://www.dell.com/us/p/adamo-laptops

Re: Daring Fireball: Apple's Pricing Advantage

#113
post #36

Earlier quoted context omitted.

A theory: Archos has obviously created prototypes to send to the press, but it doesn't look like they're pulling off mass manufacturing at the advertise prices just yet (except the Archos 5, which has a resistive screen). Could it be that the prices quoted are simply an over-ambitious projection?

The 70 has been shipping for a week. It also sold out on the first day. And it has a capacitive screen. Interestingly enough, when I ordered mine, I got a $25 discount, for no particular reason I can discern. Brought the total cost to $256, delivered. We'll see how it measures up. You can install the market easily; my understanding is there isn't the logic in the market (yet?) to handle a wider range of devices, (wit…

I'm actually really curious about this device... did you order it straight off their site?

Re: Daring Fireball: Apple's Pricing Advantage

#114

First, Apple is the world’s leading volume buyer of a precious, expensive component: flash storage. They get better prices and priority availability from suppliers. Do they get better prices than Samsung? Because Samsung is who designs and makes the flash memory. (Also, Wikipedia seems to say that Sony buys more than Apple.)

If Apple has a long-standing contract for deliveries of flash, Samsung probably can't easily say that they'd prefer to keep the flash memory for use in their own gadgets. Considering that at times Apple has placed orders for more than half of Samsung's annual output, such a contract is likely to exist.

That was back when flash was new and exotic, right? Every music player on the market is flash-based now, and so are many computers. Samsung's Wikipedia page says that Apple accounts for about 2% of their sales.

Re: Daring Fireball: Apple's Pricing Advantage

#115
post #111
post #74

When I purchased my Apple machines I also took into account the cost of the tools I would be using the operating system. Macbook Pro + Xcode + Mac OS X vs Lenovo or Dell upper end model + Visual Studio + Windows 7 Visual Studio adds a considerable amount to the final cost, but I'm also willing to put down a fair amount more for having Mac OS X.

Can you also add the cost for becoming Apple Developer then?

Umm... $0.00?

It costs nothing to become an Apple Developer. It costs $100 to be an iPhone developer, or $100 for their Mac developer program. Both of which give you previews of OS updates and the ability to sell your software in their stores. Otherwise, you don't have to pay anything.

Re: Daring Fireball: Apple's Pricing Advantage

#116

First, Apple is the world’s leading volume buyer of a precious, expensive component: flash storage. They get better prices and priority availability from suppliers. Do they get better prices than Samsung? Because Samsung is who designs and makes the flash memory. (Also, Wikipedia seems to say that Sony buys more than Apple.)

Wikipedia seems to say that Sony buys more than Apple

The table on the Samsung page lists companies by fracton of Samsung's total sales, not just flash memory. Nor, for that matter, does Apple only buy flash memory from Samsung.

Re: Daring Fireball: Apple's Pricing Advantage

#117

Earlier quoted context omitted.

If Apple has a long-standing contract for deliveries of flash, Samsung probably can't easily say that they'd prefer to keep the flash memory for use in their own gadgets. Considering that at times Apple has placed orders for more than half of Samsung's annual output, such a contract is likely to exist.

That was back when flash was new and exotic, right? Every music player on the market is flash-based now, and so are many computers. Samsung's Wikipedia page says that Apple accounts for about 2% of their sales.

Ugh ____ has 95% of the music player market.

Fill in the blank.

Re: Daring Fireball: Apple's Pricing Advantage

#118
post #96

Another factor here is that mobile devices are all a tier or two down from personal computers in terms of the raw number of dollars. Seems like a 15% premium is something people will consider paying if it only amounts to $30, but might not if it's $300. This was especially true in the early days of the PC revolution. The Mac 128K sold for $2495 at the time, which is more than $5000 in today's dollars[1]. I can't find…

The industry has changed and is continuing to change into a world that suits Apple better. Getting in early and big (eg iphones & ipads) is letting them influence the change even more in their favour. What caught my eye in this article was: "Nobody knows what kind of CPU they have in their phones." That's a world that suits Apple. Interestingly, PCs are unique in that people take an interest in components. Do people…

Untrue, if you care you know. Cars for car enthusiasts. Espresso machines for espresso enthusiasts. Apple is targeting the lowest common denominator with their tiers. But it works because their vertical approach works better than what you get with Windows anyhow.

Re: Daring Fireball: Apple's Pricing Advantage

#119

Earlier quoted context omitted.

From a hardware standpoint the Nook isn't that far off of the iPad. Any differences in feature set are largely due to them running some custom version of Android which probably cost a lot more than running stock. Just slapping Froyo on it would have made the feature set as comparable as you could get. So in terms of pricing (and probably only pricing) it's a fair comparison. It illustrates that vendors could compete…

What? The new nook has a 16-color e-ink screen. They don't even ship a frackin' web browser because they admit the experience is clunky.

Actually the new Nook is not an e-ink display, it's a 1024x600 LCD, and it does come with a web browser.

http://www.pcmag.com/article2/0,2817,2371521,00.asp http://www.engadget.com/2010/10/26/nook-color-first-hands-on...

Re: Daring Fireball: Apple's Pricing Advantage

#120

Earlier quoted context omitted.

If Apple has a long-standing contract for deliveries of flash, Samsung probably can't easily say that they'd prefer to keep the flash memory for use in their own gadgets. Considering that at times Apple has placed orders for more than half of Samsung's annual output, such a contract is likely to exist.

That was back when flash was new and exotic, right? Every music player on the market is flash-based now, and so are many computers. Samsung's Wikipedia page says that Apple accounts for about 2% of their sales.

I agree that the flash market has changed a lot in the past two years, but no mobile gadget maker can compete with Apple as a reliable consumer of flash memory. Even the newcomers who are using the flash to build SSDs probably have to deal with the fact that Apple's deal with Samsung was made first, and sales to Apple went a long way towards funding the fabs that enable Samsung to now sell flash to so many other companies, too.
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