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OT: 18% of iPhones apparently "unlocked" Effects Pedals, Units & Accessories
Old 29th October 2007
  #31
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Quote:
Originally Posted by bit mangler View Post
Hey Tibbon,

Any chance you could get some info on the Penryn Macpros from your friends??
They aren't given release dates far beyond when normal people are. They know about a few things, but nothing jaw dropping. Just stuff like, "Bob's working on a patch for Address Book" or something silly like that.

Apple isn't losing money on every iPhone sold. This isn't Microsoft and Xboxes. They get a kickback from AT&T, but that doesn't mean they lose money on the phones.
Old 29th October 2007
  #32
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Quote:
Originally Posted by ssaudio View Post
No need to 'think', it's the patently obvious conclusion - simple arithmetic

it's a rip-off!
I didn't mean the price to the end user but the cost to Apple. They are clearly making money off of each iPhone even if the user never gets an AT&T plan.
Old 29th October 2007
  #33
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Quote:
Originally Posted by initialsBB View Post
I didn't mean the price to the end user but the cost to Apple. They are clearly making money off of each iPhone even if the user never gets an AT&T plan.
The parts cost around $265, so, with the tied term contract they stand to make a serious profit on each unit

As to what you meant; re-reading your posts I'm still not sure, sorry
Old 29th October 2007
  #34
Quote:
Originally Posted by initialsBB View Post
I didn't mean the price to the end user but the cost to Apple. They are clearly making money off of each iPhone even if the user never gets an AT&T plan.
I don't know anything about the cost structure and pricing on this product but it's pretty common to structure pricing so that the break-even point is down the road, sometimes by years, not months.

Of course, that factors in development costs -- not simply manufacturing costs.
Old 29th October 2007
  #35
Quote:
Originally Posted by ssaudio View Post
The parts cost around $265, so, with the tied term contract they stand to make a serious profit on each unit

As to what you meant; re-reading your posts I'm still not sure, sorry

Is that parts alone?

Because if it is, let's not forget that all those parts don't miraculously decide to jump together, pack themselves into boxes, and do their own advertising and merchandising...

Not even Apple commands that kind of magic...

heh


But even if that $265 is for everything (short of recouping dev costs), I'm thinking that doesn't leave the kind of margins one would typically expect in such a product.
Old 29th October 2007
  #36
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Come on guys. I hate to belabor this way off topic point but regardless of whether or not they have recouped their R&D costs yet or what exact profit margin they make on the iPhone, I think it's safe to say their making something on the sale of the phone alone or else they wouldn't be selling a nearly identical product (minus the phone & camera) for $100 less. Right? Am I crazy? I suppose there's a remote chance that Apple is relying on that $400 from AT&T to make their profit and therefore they're losing several hundred dollars on each iPod touch they sell. Either that or the built-in camera, speaker and mic that the Touch is missing add several hundred dollars to the cost. Neither of those scenarios seems very likely though.
Old 29th October 2007
  #37
Quote:
Originally Posted by initialsBB View Post
Come on guys. I hate to belabor this way off topic point but regardless of whether or not they have recouped their R&D costs yet or what exact profit margin they make on the iPhone, I think it's safe to say their making something on the sale of the phone alone or else they wouldn't be selling a nearly identical product (minus the phone & camera) for $100 less. Right? Am I crazy? I suppose there's a remote chance that Apple is relying on that $400 from AT&T to make their profit and therefore they're losing several hundred dollars on each iPod touch they sell. Either that or the built-in camera, speaker and mic that the Touch is missing add several hundred dollars to the cost. Neither of those scenarios seems very likely though.
I was just offering the stuff about development/line-setup/etc costs and recoupment structure as an aside.

For instance, it's just that economic petard upon which Sony's PS3 has impaled itself... The unit was made to sell initially at a price considerably under its manufacturing cost -- with the idea that production costs would fall on a units/sold basis due to economy of scale and recoupment might begin within 18 to 24 months (working off the top of my age-impacted memory, here). But then they had to cut prices even further and that made the PS3 look like it would be unlikely to stop bleeding money for a long time to come.

__________

Back to phones and subscription revenue...

That said, it's potential revenue from subscriptions that ends up putting heavily discounted provider-locked-in phones from other makers in the line-ups of various service providers -- no one should discount subscription revenue in this market. It is king.
Old 29th October 2007
  #38
Dan
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If Apple gets a $15/month kickback from AT&T on iphones, that's over 200,000,000 a year reasons to make sure AT&T is the sole service provider for iphone service plans. Seems like good business sense to put a few devolpers on protecting that.
Old 29th October 2007
  #39
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exactly...
Old 29th October 2007
  #40
Quote:
Originally Posted by Dan View Post
If Apple gets a $15/month kickback from AT&T on iphones, that's over 200,000,000 a year reasons to make sure AT&T is the sole service provider for iphone service plans. Seems like good business sense to put a few devolpers on protecting that.

Kickback is such an ugly word. heh


I believe the preferred term is revenue sharing.

At least that's what my boys Vinnie and Vito were tellin' me as we tossed that dry cleaner's down on 7th...
Old 29th October 2007
  #41
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hey

who you calling ugly!

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