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I never thought I'd see the day that Apple would be winning on price. This surely flummoxes the current tablet challengers.
by ryandvm 16y ago
I never thought I'd see the day that Apple would be winning on price. This surely flummoxes the current tablet challengers.
- zdw 16y agoSee also here: http://news.ycombinator.com/item?id=2295347 http://news.ycombinator.com/item?id=2295347
- ajg1977 16y agoApple hardware has never been about price, it's been about profit. In the PC market this generally equates to more expensive like-for-like machines because the Dell/Sony/Lenovo's of this world are sold at wafer thin margins. When it comes to tablets & phones Apple's costs, from components through to retail, are so much lower that they can sell at lower prices than their competitors and still make a healthy profit on the hardware. For tablet/phone makers, trying to figure out how to compete with Apple in the mid to high-end range must be a very miserable situation to be in.
- trotsky 16y agoApple's evolving model as a content reseller allows them significant latitude in upfront pricing. When you're taking a 30% cut of all digital content purchased on the device you can afford to have slimmer margins on the device as it goes out the door as compared to competitors that retain little ongoing revenue. This dynamic is exactly why you've seen the Kindle drop in price so much since release.