back to article Researchers rip iPad apart to reveal Apple's profits

Apple stands to make a profit of up to $483 per unit on its iPad according to a very literal breakdown by industry analysts iSuppli. The research firm said the total cost of materials and manufacture for Apple's big iPhone ranged from $229.35 for the 3G-less, 16GB version, which sells for $499 to $346.5 for the top of the …

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  1. Tony Paulazzo
    Jobs Horns

    Pointless point

    I hate Apple. I distrust Google. I tolerate MS. I love being in bed with a hot guy on a winters night.

    But if the iPad tanks and they start turning up on Ebay for a ton, I'd get one, cool toy! I'd prefer the Archos 9, Win7 FTW (y'know, with Flash, text recognition and all that groovy computery stuff), but that 10 hour battery life sounds sweet - tho' I do wonder if that time halves on jailbroken versions (y'know, with flash, multitasking and so forth).

    This life's a fiction, and is made up of contradiction. 'W Blake'

  2. Max Miller

    Codswallop

    1. If you don't like it don't buy it

    2. The costs clearly only cover the parts and not the labour, shipping costs, support costs, sales commissions, marketing, OS development work.

    On the support side anyone who has ever had a problem with an apple product (not that often I know) will tell you that it is a price worth paying because their support is untouchable compared to the competition and probably costs them a lot of money to manage.

    Any good marketeer will tell you the product is only half the story and the customer service level and experience is the other. I would happily pay for something that works every time over a cheaper alternative that only may work a la windows.

  3. Grubby
    WTF?

    Pointless Analysis...

    I don't see why they have wasted their time working out how much the components cost, it's like saying well the new Champ Manager game costs £30 but a CD only costs 5p...

    Clearly all companies have to pay people to come up with the ideas etc, and apple are the leaders of innovation at the minute, therefore will pay more for the people they employ. Then the people who work out how it will work, try getting a programmer / systems architect for $450 a year (assuming you have your phone for a year). Then paying people to put them together, there are millions of other charges not included.

    1. The Original Steve
      FAIL

      Huh?

      Um, where's the innovation in taking an iPod touch and making it bigger?

  4. Andrew James

    Apple is not that bad really

    Even if Apple were to make 50% actual profit from every product they sell… they still don’t take anywhere near as much money from you as the government does, and the government doesn’t even provide you with anything that you can hold in your hand. Unless you count local government, in which case you might have a bin that they empty every couple of weeks.

    Gov takes tax on what you get paid.

    What is left you spend. Gov takes tax on what you buy.

    Gov takes tax from supplier of what you buy on the profits they made on what they sold you.

    Got some money left? Leaving it in a savings account? Gov charges you tax on the interest you get paid.

    Want to own a car? Gov charges tax when you buy it. You have to pay tax to put it on the road. You pay huge amounts of tax on the price of the fuel to run it.

    They even make you pay a tax to your local authority for the priveledge of living there.

  5. Bob-Bob-Bobbing_Along

    Saville Row suit £5000, cloth £500, Value?

    What about the costs of the staff who build the bloody thing, advertising costs etc

    I could buy some nice cloth for a Suit for £500, but if I want it made up by Saville Row, I may end up with a bill of £5000.

    Another comparison could be the global costs of a can of Coke, I am sure the Coke liquid itself is worth less than a penny - maybe less, no doubt the can costs more and we pay for all the heavy advertising and constant battle with Pepsi, just like Apple v Microsoft.

    Check this:

    Can of Coke

    Cheapest: 0.2 Euros in , China

    Most expensive: 65 Euros in manchester, Great Britain

    Diff in percent: 32400 %

    http://www.howmuchatyourplace.com/how_much_does/Can%20of%20Coke_cost.php

    1. HFoster
      FAIL

      €65 can of Coke?

      Sure, if it's got actual Colombian in it. I think your source has fallen victim to bullshit, squire. Check the Euro-Pound exchange rate (and the exchange rate of the Euro against your local currency, if it's not Sterling). €65 could buy a week's grocery shopping for a couple in Munich. Even as the most expensive city in Germany, a can of Coke costs maybe €1.50 (I don't know, I drink beer at €0.75/500ml bottle).

    2. Mike Hanna
      FAIL

      65 euros?

      I think it should be 0.65 euros, which still leads to a 224% geographical increase. Some silly Manc tit lost the ability to include a decimal point

  6. Greg D
    Thumb Down

    So Apple are using this to make an obscene amount of money

    Tell us something we dont know. I avoid their products for exactly this reason - I can get a device far more functional, without draconian lock-ins far cheaper than an Apple product.

    It may not look as good, but who honestly gives a fuck unless you're a self-righteous retard who has to spunk their money on what people tell them to wear/buy etc.

  7. Martin Nicholls
    Gates Halo

    On Microsoft...

    "On the other hand, that enthusiasm never translated into wide takeup of Microsoft's attempts at tablet PCs"

    Of course Microsoft have never actually done tablet. They do know what tablets are all about though - Inking, which there's no possibility of doing with the iPad which Gates will clearly recognise.

    I say wait for the courier before doing *comparisons* if it ever sees the real world (apparently there are real versions being played with inside microsoft though), I gotta tell you though to say Microsoft's experience even in the current devices doesn't show would be a giant shambles.

    The question of course is if there's a market. All 7 fanbois asside can Apple carve out a new market like it did with the iPhone? I can't see it - and they'll never get real tablet users because it doesn't do a whole bunch of listable things you'd want a tablet to do.

    Touch interfaces are great but you ALSO need a stylus, there's no working round that.

    1. Neil 6

      Yes they did...

      ... it just didn't take off. http://www.microsoft.com/hk/windowsxp/tabletPC/default.mspx

      I think we need a netbook/slate compromise. A dual core Atom based slate with an optional stand/keyboard/optical drive and no vendor lock in. Then people will quickly lose interest in the ipad.

  8. Anonymous Coward
    Anonymous Coward

    @Max Miller

    Slightly off topic but are you seriously claiming that a can of coke in Manchester costs nearly 57 quid!!!!!!

    1. M Gale
      Badgers

      Blimey

      I know Coca Cola spend more on advertising than, say, refilling water tables in drought areas after they put a fucking great bottling plant there, but this is ridiculous!

      Wonder how much it costs to get a South American worker's union member shot these days?

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