Apple's iPad real cost is $270

Sarah

Since Apple is trying to convince us that the iPad is the most innovative concept ever, and that everyone needs another device that does the same thing as our other devices, why shouldn't they try convincing us that it is worth the price? Even though they know, according to this article, it only cost half as much to manufacture.

06:10 pm, Jan 29, 2010

JohnD

Its a matter of sales. Apple will try to recover as much of their outlays as early as possible and if sales exceed targets , the price will come down. Takes about a year.

06:13 pm, Jan 29, 2010

Chris

So in the first line you are already contradicting yourself: $270 buys you a bag full of parts. That's not the cost of manufacturing. And after manufacturing, you have a product in a factory in China which Apple then has to bring to a store near me. That store has people working there, it is paying rent, heating, cost of infrastructure. Maybe a few TV advertisements. Maybe pay some money to the people developing the goods.

Somehow there seems to be a fashion to examine every Apple product and come out with the lowest possible number that is supposedly the "real cost". Strange that nobody does that for Microsoft or Dell products. I'd like to know what's the "real cost" of an XBox, or the "real cost| of Windows. Or the "real cost" of an HP Envy.

07:51 pm, Jan 29, 2010

Real world user

There's licensing costs

And years of research and r d and many Protos leading up to this.
I would like to see a 7" model for 399.00 APPLE please.
you guys are in lala land if you think atom netbooks only suck a little.
Ipad will come witht good sw with testing limited to apples hw ( thank god).
Opn hw and windows almost killed many good people.

11:13 am, Jan 30, 2010

kazulk

wanna know wuts funny, they dont support flash, so for most people who only need a computer for the internet, who would be well suited to buy a netbook, would be turned away from this because the fact that half if not most of the times on many popular websites for those users needs flash

01:34 am, Feb 3, 2010

Fish

Long time Apple user. Currently administer over 3200 iMacs, eMAc, iBooks, MacBook Pro's and 14 X-Serves. The iPad is not worth 499.00, if it was around the 350 range it would be a doable purchase for an oversize under storage iPod.

http://www.youtube.com/watch?v=lQnT0zp8Ya4

http://www.youtube.com/watch?v=x0rgjV9Y6jA

http://www.funnyordie.com/videos/f7a03edbd7/pee-wee-gets-an-ipad Enjoy..

12:59 pm, Feb 3, 2010

D.

This reminds me of the numbers I saw for the VIC-20 from Commodore. About $30 of parts, retailed for $150. Seemed like a "typical" retail markup, once you add in retailer markup/cost of running a store.

What is interesting is that (unlike what happens with game consoles) it isn't being sold at a loss, with a plan to make it up on media purchases.

01:04 pm, Feb 3, 2010

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