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Strategies & Market Trends : BAK - Investing
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To: XoFruitCake who wrote (3042)7/6/2012 10:58:51 AM
From: DoggyDogWorld  Read Replies (1) of 3249
 
Re: APPL...Xo

their manufacturing cost is at least 15-20% less than anyone else
This was true for a while but I don't buy it any more. The rule for semiconductor economies of scale is something like 10% (or 20%???) for each 10x volume increase. 10m units has an insurmountable cost advantage over 10k, but only a few percent advantage over 5m units. For a while AAPL was shipping in such superior volumes that they did have 20%+ cost advantage (total reversal from PC vs. Mac days). Plus they used their buying power to lock up supplies of critical components (e.g. certain types of flash) before the competition even knew the details of Jobs' latest design which they needed to copy. But the Android (and quasi-Android) ecosystem has achieved similar economies of scale so I no longer see a meaningful manufacturing cost advantage.
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