iPod Touches: Worth a lot Less than Selling For

It's common knowledge that Apple rips all buyers off. Nothing new here. You pay more for the "quality," the brand name, and the so-called brag rights

I thought it was "Profit Margin" not "Product Margin"... =/

I thought it was "Profit Margin" not "Product Margin"... =/

 

Lol.. Typo

itouch uses foxcomm circuit boards, regarded as cheap and nasty in the PC world.

I thought it was "Profit Margin" not "Product Margin"... =/

I think we had a long talk about who approves stories and who fixes the typos Sabr.

I think we had a long talk about who approves stories and who fixes the typos Sabr.

 

Yes, we did.

 

I'm not blaming anyone. People make mistakes. It just happens that whoever approved this story didn't know that Product Margins != Profit Margins...

Don't forget the huge cost of marketing and designing. It's really not a bad price if you actually bother to think about it. And besides that there's a lot of other products out there that cost a lot more than they should (All PCs since they always break. Just kidding. Ok only half kidding

And besides that there's a lot of other products out there that cost a lot more than they should (All PCs since they always break. Just kidding. Ok only half kidding

Oh that's right. Macs never break! What does break mean? A Windows issue? Not all PC's (I guess this means non-macs to you) run Windows. I've never had a PC 'break' on me. I've had Windows get dicked up, but that's always fixable. If you don't use PCs (again non-macs as defined by you), I hope you enjoy the 25% plus your paying to Apple when you could be building a hackintosh (If by PC you just meant Personal Computers, and you weren't being a sterotypical Apple fanboy I apologize. I'll edit this post right up)

 

I bought an iPod touch, it's pretty nifty. Now that's its jailbroken it's almost a UMPC in function. It really doesn't surprise me that Apple is making such huge profits from this, although $300 isn't all that overpriced. If the 16GB model was $300, the price would be perfect.

Edited December 21, 2007 by erei33
omg ur gay!

I agree, a 92% margin (from manufacturing to retail) really isn't all that much. It's not all profit margin as a signifigant amount will go to the retailers, advertising, shipping, and all the other things that have been mentioned.

 

There are items in retail stores electronic and not that people buy every day where the margin is much higher.... Oh I don't know, how about that nifty fo-leather case for your phone... retail cost 9.99 - 19.99... manufacturing cost... 0.50.

 

Mac hardware does tend to be priced higher than PC hardware does... big deal. Anybody know what a super-slick PC case costs these days? And Mac's have the slickest and coolest cases. There's a good chunk of your price difference right there. Plus anybody else notice how much of a bargain MAC software is? MS Office = $300-$500, What does Apple charge for their office suite? Window = 150 on up... what does apple charge for OSX (an operating system that nobody denies is superior?)

 

Yeah.

There's an old saying amongst businessmen: "Learn to screw the customer and have them say 'thank you'."

Basically, get as much as you possibly can out of something without having people turn away. Apple already is the biggest brand in MP3 players. Apple already has an IMMENSE following for them. So showing why to get THEIRS isn't an issue. Can you buy anything that overall does what the iPod Touch can do, just as beautifully and easily, for the SAME price, let alone cheaper? Nope. And since they're putting out an official SDK soon, it'll be even more ahead of everyone else very shortly. Also, notice how I said "just as beautifully". The iPod is easily a work of art. It's easy and simple and looks great. I bet Apple invested as much or more into the design of the device as the function. And these days with fashion controlling our lives as much as it does, you really want something to look great. The iPod is also very sturdy. The glass screen means that there's virtually no chance of it getting scratched from normal use, which not only makes it harder to see things on the screen, but also makes it really ugly.

And here are Apple's annual budgets for the iPod based on the numbers you posted:

 

Research: $0

Development: $0

Marketing: $0

Packaging: $0

Shipping: $0

Employee pay: $0

Electricity and other utilities: $0

 

Without knowing those, iSuppli's component price list is useless

And here are Apple's annual budgets for the iPod based on the numbers you posted:

 

Research: $0

Development: $0

Marketing: $0

Packaging: $0

Shipping: $0

Employee pay: $0

Electricity and other utilities: $0

 

Without knowing those, iSuppli's component price list is useless

Agreed - but this thread is about the iPod Touch, which as we all know is ever so similar to the iPhone. Research and Development will be near $0. As for the other costs, I honestly don't expect them to be anywhere near $100, or even $50.

Why do women pay $5,000.00 for a hideous wedding dress that costs at most $100.00 to make, only to wear it one day?

 

This is a crazy world we live in.

 

Everything should be free...just so I never have to read another thread where people complain about anyone making a profit.

 

Oh, the nerve of those people who sell water. They must never hear the end of it.

if i owned a large company, i'd make as much money as i could get away with.

its good buisness, you cant have everything free

While I think the iPod Touch is bar-none the greatest MP* player on the market, it's crazily overpriced, especially when looking at $-to-GB.

While I think the iPod Touch is bar-none the greatest MP* player on the market, it's crazily overpriced, especially when looking at $-to-GB.

$/gb value is what the ipod classic is for.

No . WTF do you expect from such a large company. That is what the ideal of a business is; to make a profit. I am not a pro Apple consumer in any way shape or form; but I do prefer a mac over a windows machine. Thus, yes, it sucks that 92 % is going in the company's pocket, cant they at least give 1/3 to charity!?

if i owned a large company, i'd make as much money as i could get away with.

its good buisness, you cant have everything free

 

But where does fairness kick in, people want to make money dont get me wrong but it's companies that drain every penny from you that make me sick. Look at Microsoft for example, their greed knows no bounds.

Supply and demand

Honestly, I didn't mind shelling out $319 (that is $299 plus tax here in New Jersey, USA) for what is essentially a wicked cool PDA with a stripped down version of Leopard on it.

 

 

Besides, the iPhone is more expensive than the iPod touch (8GB model, same price as the 16GB model), but I don't see anyone crying about profit's and cost of manufacturing. But the flip side to that is that if they wanna "criticize" Apple, then have them go after some of the phone manufacturer's on Verizon's network.

 

 

 

I'd rather pay for the iPhone at that price. The thing keeping me from doing so is AT&T.

Get one and jailbreak it then!

Read my signature closely then!

Forgetting the research and engineering costs? There's a lot more then just what the product costs to make.