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The BOM is only part of the value in a product. Apple, notably, recognizes and is consistent in asking for all the value they associate with a product. Good f
by ddingus 8y ago
The BOM is only part of the value in a product.
Apple, notably, recognizes and is consistent in asking for all the value they associate with a product.
Good for them. Seriously.
I love those, "Why can't someone make X, but cheaper, but also like Apple?" type conversations.
To answer it, one rapidly arrives at more than the product and it's immediate scope of software and hardware. There is more than that involved.
And it's worth something.
Worth what Apple asks?
Plenty of people pay. I have not, only buying a 2012 MBP. Great machine, love it, and I love it for a lot of reasons not associated with all the other Apple stuff. Because of that, I consider the machine pricey for what I got, but that's me, not Apple.
One other thing about all of this centers on just who Apple is selling to:
Often, they are selling to people willing to pay for value, not just product specs, or fairly narrow scope functionality. Android, for example, offers a TON of functionality compared to an iPhone. But, that value proposition is well distributed and lightly controlled.
It's hard to get margin for that, particularly when so many entities are involved, all seeking something for whatever value they provide, from whomever sees it as worthy.
ADS lubricate that whole system, and I would argue for the good. I like Android a lot, have my issues with information and how it's used, but overall, I'm not burdened so much that the value is in the red.
Apple does not do that, and instead offers a more structured, curated environment. Again, to many people, that is worth a lot of money. Information sensitive? Worth even more money!
Just a couple examples that speak to how non-inclusive pieces like this are.
BOM compare isn't even close to the story, and it won't ever explain the margins, nor why people do what they do either.
Love Apple, hate Apple. It's all good. I kind of hate Apple more than I love them, but again that's me! I totally recognize their value play, and commend them for it.