30% Apple

[mark-OGhnF3Lt4opAfugRpC6u6w at public.gmane.org (Mark J Dulcey)]

On 2/17/2011 12:35 PM, Ben Eisenbraun wrote:
> On Thu, Feb 17, 2011 at 12:21:17PM -0500, Mark J Dulcey wrote:
>> On 2/17/2011 10:03 AM, Jarod Wilson wrote:
>>
>>> And yet, nobody else seems to have a truly competitive tablet for
>>> less than the iPad...
>>
>> Of course they don't. Apple can price the iPad at an unprofitable level,
>
> I suppose they could do that.
>
> But they don't.
>
> http://gadgetwise.blogs.nytimes.com/2010/04/08/whats-an-ipad-cost-to-build/
>
> -ben

They may not actually be losing money on them, but from the looks of 
those numbers they're not making conventional profit levels on selling 
them either; the wholesale price of an iPad won't be much above those 
costs. Of course, Apple sells a lot of them through their own stores, so 
they're capturing the wholesale-retail spread that way. I believe that 
my basic point is still valid; Apple can sell the iPad at a lower price 
than the competing Android tablets because they are counting on 
post-sale revenue from them.