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Strategies & Market Trends : BAK - Investing
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To: DoggyDogWorld who wrote (3043)7/6/2012 12:00:13 PM
From: XoFruitCake   of 3249
 
Re: APPL...Xo

This was true for a while but I don't buy it any more
I saw some of the tear down number for Apple product. They don't full explain Apple hugh profit margin on their products (40+%). Part of the Apple superior profit margin come from supplier profit margin (no one manufacturer buy as much semi components as Apple so it stand to reason that they will get more discount). So the component cost may go down X but Apple cost go down X+Y as suppliers are more willing to give part of their profit margin to Apple to secure their order.

I think we will see it in the Ipad mini derby. The estimate for the building cost of Nexus 7 is around $180ish. So if Apple come in with similar product at $300 price point then I think your thesis is correct. But my guess is that Apple will come in with better spec (at a minimum dual camera, better touch screen) but still stick to $300 price point. that would be an indication to me that Apple build cost is lower than anyone else...

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