Maikai.Guy
Well-known member
- Jan 15, 2011
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You also have to remember economies of scale here. Apple uses the SAME chip, Ram, etc across three major lines (iphone, ipad, ipod) which lowers unit costs considerably.
Your point about the comparison between the iPad and XOOM were good. People need to compare the value of the product as well as the prices.
But you left the field with the economies of scale. I'm in the semiconductor biz and once you clear the hurdle of 500K to 1M units annually, there is really no place left to go. Pricing goes almost flat, if not dead flat after those volumes.
That being said, the electronics component vendors are constantly refining their manufacturing processes for higher efficiencies. This results in about a 5% reduction in component costs each year.
But again, it doesn't matter if Apple made 5 million or 50 million iPhones. The cost per iPhone would be almost identical at those volumes.