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Apple can sell the iPad for $500 because they have the iTunes store backing it. They know they don't need to make money on the sale of the device because the en
by yock 16y ago
Apple can sell the iPad for $500 because they have the iTunes store backing it. They know they don't need to make money on the sale of the device because the entire point of buying the device is to buy apps for it, and Apple as we all know gets a cut from every sale.
Other manufacturers don't have this working for them.
- aneth 16y agoApple makes a lot of money on each device. Their margins are consistent with the rest of their product line. http://www.computerworld.com/s/article/9150045/Apple_makes_208_on_each_499_iPad http://www.computerworld.com/s/article/9150045/Apple_makes_2...
- Samuel_Michon 16y ago"[Apple knows it doesn't] need to make money on the sale of the device because the entire point of buying the device is to buy apps for it," The opposite is true. Apple doesn't need to make money on software, because their hardware products have healthy profit margins. The iTunes Store breaks even, and it has done so for years. The same is true for the other software Apple sells. Compared to competing products, Apple's software products are dirt cheap. Its office suite (iWork) is priced at $60 while Microsoft Office is priced at $280. Apple's photography software (Aperture) costs $80, Adobe's Lightroom costs $300. Apple's video editing suite (Final Cut) costs $1000, Avid's Media Composer costs $2300.
- lurker19 16y agoDo not ignore the fact that Apple's offerings are far less powerful, useful, and debugged than the competing software you listed. Aperture requires a Mac Pro to run properly, which undermines the cost argument.
- Synaesthesia 16y agoAperture runs fine on any Mac. 4gb RAM helps, and an SSD.