Change ForumPCs & Mobiles Forum - Do I Not Trust Apple - Page 1
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Reviewer
Microsoft are often painted as the villains in the computing world and Apple as some sort of Designer Robin Hood good guy. I happened across this piece over at Apple Insider crowing about how Microsoft would alienate its OEM partners by pricing the Surface to compete with their 32Gb iPad.
In case the link disappears, the gist of it uses iSuppli data to cost out the 32Gb iPad and Deutsche Bank estimates for the Surface:
The iPad and Surface both cost around $23-30 for the CPU, $14 for memory, $34-39 for NAND Flash, $135-ish for the touch panel display, $32 for the battery and $15 for Wi-fi.
Then they say $0 for iOS and $90 for WindowsRT.
$78-90 for "others" and $10 manufacturing costs making a total of
$333 for the iPad and $449 for the Surface.
Then they put on the manufacturing margin - $266 or 44% for the iPad and a projected $137 or 23% for the Surface. To give OEMs the same margin for the Surface it would have to be priced at a whopping $820 retail.
If you ask me, Apple is cooking the books writing off the OS cost, and I think making a 44% margin on retail is fairly excessive (remembering that when they retail here in the UK they use their own exchange rate of $1:£1)
J Mark Oates
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Currently Building A Universe To Live In
sprockethole.myreviewer.com
Super Admin
Not sure I quite understand all the numbers there. And also you can't write off the OS cost, Apple are paying it, the problem is you can't monetise that cost easily because... Apple are paying it.
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Reviewer
The key numbers - the ones that shock me - are 1) Apple underwriting the OS cost to make out the Microsoft tablet is more expensive; 2) the $10 manufacturing cost. I realise labour's cheap in China, but I wonder how many man-hours constructing a tablet involves; 3) the 44% retail margin. Forty-four percent. That's two percent more than our Doc. 
But seriously - nearly half the cost of the device is markup??
J Mark Oates
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Currently Building A Universe To Live In
sprockethole.myreviewer.com
Elite Donator
You're not factoring in the R&D costs though are you? Or the shipping / import taxes etc.
Reviewer
Well, the Apple Insider wasn't.
J Mark Oates
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Currently Building A Universe To Live In
sprockethole.myreviewer.com