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Love how Apple up-sells storage in hundred dollar increments. I just bought a 32GB SD card (class 10) for my camera for $50 and I'm not buying millions of them
by hop 16y ago
Love how Apple up-sells storage in hundred dollar increments. I just bought a 32GB SD card (class 10) for my camera for $50 and I'm not buying millions of them at a time.
- tptacek 16y agoWarning: predrantry follows. If you want to participate in a market where things are priced according to what they cost the vendor, look into gypsum. In tech companies, cost-based pricing is good mostly for getting you fired from your Product Manager role. Tech products are priced according to the market. For many products, Apple competes aggressively on price. What that means is that within the product line, Apple wants there to be a SKU with the best pricing among its substitutes. It may also mean that every product in the line "wants" a price that is competitive according to its specs. But neither of those pricing goals means Apple will price anything according to the cost of components. Finally, and perhaps most importantly, in complex markets one of the most important jobs marketing has is to segment the market, which means finding product attributes that command different price points to maximize profit for the company. It may be the case that, regardless of what it costs Apple to add storage to the iPad, the most common kind of customer that wants a large-storage iPad isn't very price sensitive. This works in both directions. You can play the segmentation game in exactly the opposite direction in enterprise sales: release your product as open source, but sell a supported site-licensed edition. In virtually all Fortune 1000 companies, it is next-to-impossible to embark on any new IT initiative without an accompanying purchase order; the whole of what IT does is structured around selecting, procuring, and maintaining products.
- throwaway5317 16y agoOr, with the actual pricing compared to the competition, think of it this way: The price model is competitive enough for the price to sink in hundred dollar decrements, although a 32GB flash memory chip is only $50. Maybe that's something you only can do if you expect to sell millions of them?
- gamble 16y agoNot all flash is the same. SD cards and USB sticks use cheap, slow, high-density flash manufactured with older processes. The A4/A5 flash is also integrated into the same package as the CPU(s). Most analysts estimate the flash as a significant part of the overall cost of iOS devices. Yes, it is market segmentation as well, but that extra flash still isn't free.
- sparky 16y ago> The A4/A5 flash is also integrated into the same package as the CPU(s) Really? That would be by far the most aggressive die stacking I've ever heard of, if true. I thought it was soldered to the motherboard in stacks of 2-4 dice.
- modeless 16y agoA4/A5 includes RAM in the package, not flash. The flash used is in standard packaging, soldered to the motherboard.
- gamble 16y agoYes, I was thinking of the RAM. To support my original point, though, iSuppli's breakdown of the iPhone 4 last summer had the 16 GB flash chip as the second-most expensive component, after the retina display, at ~15% of the total outlay on parts.
- smackfu 16y agoNot to mention $130 for a 3G chip and antenna. But that is the Apple way. The only good deal is the lowest end model.
- code_duck 16y agoThe rip off level pricing on storage and the obvious, purposeful omission of a card slot is one thing that really turns me off from buying an iPad or iPhone.
- olivercameron 16y agoYet they still manage to make the iPad cheaper than every other tablet out there. Weird, huh?
- code_duck 16y agoNot 'weird'. That is unrelated and dependent upon other factors. I'm not referring solely to the iPad. Apple charges an extra $100 for 16GB of flash storage for iPhones and iPods. That's not market rate. The whole idea of pricing storage like that came from the iPod, and I think by the time you have devices that are used for general computing like iPads, it's time to drop it. I would prefer to have a card slot. (By the way, for people who may be downvoting my earlier comment because they think I'm some crazed anti-Apple partisan, I do own a MacBook Pro and an iPod. A client is also buying me an iPad 2 for completing a project, so... that's just my opinion about the storage pricing).
- Someone 16y agoI would prefer to have a card slot I am not sure whether I would want one. Having one would introduce a lot of opportunities, but also would remove lots of ease of use. Install an app => user must select where to install it. User interface-wise, what would happen to the home screen if I take out a card with some applications on it? What if I plug in another card? What if that card contains an application that already is on the built-in flash? Will this support separating executable from user settings? Etc. The best solution for this I know of is the one Microsoft chose for their phones: no built-in flash, and the card slot is in a place where it cannot be removed without shutting down the hardware. However, I am not sure that solution adds sufficient value to the device to warrant its downsides (some compartment door that makes the device slightly larger, and that likely makes the device look a little bit less nice)
- Gilpo 16y agoThese iPads ain't for you. Apple doesn't want two important kinds of customers: power-users and penny-pinchers. Simple as that.
- dr_ 16y agoWhat tablet would a "power user" use then? And what practical tablet is cheaper?
- nlogn 16y agoFor "power users", the Xoom should be a clear winner, no? More free customization, tabbed browsing (and plenty of RAM to handle it nicely), and most importantly, it is free to develop for the Xoom from any OS. As far as cheaper, maybe the Nook Color would be a smarter buy for the "penny-pincher".
- IDisposableHero 16y agoWhat tablet would a "power user" use then? A laptop.
- mcav 16y agoCost has nothing to do with the iPad's viability for power users.
- SkyMarshal 16y agoWhy bother with the long tail when you've got the bulk of the distribution in your pocket already.
- statictype 16y agoThose 65,000 iPad apps? Those were developed by "Power Users".
- rglullis 16y agoNot for themselves.