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Ok why is it so expensive? Is it because there is no competition or because they have poor yields on that chip? I mean after all this is just a phone in a fanc

Ok why is it so expensive? Is it because there is no competition or because they have poor yields on that chip? I mean after all this is just a phone in a fancy big case. I mean, they are not too constrained by the size nor the cooling. Extra connections on board add how much, $50? I'd think the beefiest version wouldn't cost more than $2000. It doesn't have a screen like a laptop etc.

samcat116 3y ago
Its two of the worst yield chips. Its a lot more than a phone...
- varispeed 3y ago
  It's less complex as you don't have the size constraints and more freedom regarding heat and power, everything else is very much the same in principle. I don't believe it costs more than producing a phone. Only substantial costs may be when it comes to poor chip yield. But you think otherwise, I am all ears.
  - xcv123 3y ago
    By the same logic, the Nvidia H100 is just a phone and should cost a few hundred dollars (H100 is priced at $40,000 per unit and has fewer transistors than M2 Ultra)
  - buffington 3y ago
    Not all product pricing is determined by the cost to produce the product. Not all product pricing is intuitive to consumers. Products are frequently sold at a loss as well (google "loss leader") for various reasons - usually to ease adoption of a platform (Microsoft's Xbox 360 comes to mind, though my memory of it being a loss-leader might be apocryphal). Whether or not you believe it costs more or less to produce a chip than it costs to produce a phone isn't relevant. The price of phones aren't determined solely by the cost to produce phones. There are many more factors involved. Supply chain agreements, labor contracts, marketing, regulatory, tooling, distribution, market factors, etc, etc - those are just some of the things that influence a product's pricing. The factors considered when setting a chip's price shares those same concerns and probably more.
brianwawok 3y ago
Ok, create one for less and sell it.
- varispeed 3y ago
  Not sure how such remark is relevant? Can you point out where I am wrong and explain why?
  - deleted 3y ago
    [deleted]
mft_ 3y ago
It’s not the answer you’re looking for, I suspect, but it’s the price that it is because Apple’s marketing team has run a bunch of market research and this is the price they judge will maximise their overall profit.
buffington 3y ago
> I mean after all this is just a phone in a fancy big case. Are you aware that the M2 Ultra isn't in fact a phone, but a SoC? > I'd think the beefiest version wouldn't cost more than $2000. It doesn't have a screen like a laptop etc. And it never will. It's a chip.

samcat116 3y ago

Its two of the worst yield chips. Its a lot more than a phone...

varispeed 3y ago
It's less complex as you don't have the size constraints and more freedom regarding heat and power, everything else is very much the same in principle. I don't believe it costs more than producing a phone. Only substantial costs may be when it comes to poor chip yield. But you think otherwise, I am all ears.
- xcv123 3y ago
  By the same logic, the Nvidia H100 is just a phone and should cost a few hundred dollars (H100 is priced at $40,000 per unit and has fewer transistors than M2 Ultra)
- buffington 3y ago
  Not all product pricing is determined by the cost to produce the product. Not all product pricing is intuitive to consumers. Products are frequently sold at a loss as well (google "loss leader") for various reasons - usually to ease adoption of a platform (Microsoft's Xbox 360 comes to mind, though my memory of it being a loss-leader might be apocryphal). Whether or not you believe it costs more or less to produce a chip than it costs to produce a phone isn't relevant. The price of phones aren't determined solely by the cost to produce phones. There are many more factors involved. Supply chain agreements, labor contracts, marketing, regulatory, tooling, distribution, market factors, etc, etc - those are just some of the things that influence a product's pricing. The factors considered when setting a chip's price shares those same concerns and probably more.

brianwawok 3y ago

Ok, create one for less and sell it.

varispeed 3y ago
Not sure how such remark is relevant? Can you point out where I am wrong and explain why?
- deleted 3y ago
  [deleted]

mft_ 3y ago

It’s not the answer you’re looking for, I suspect, but it’s the price that it is because Apple’s marketing team has run a bunch of market research and this is the price they judge will maximise their overall profit.

buffington 3y ago

> I mean after all this is just a phone in a fancy big case. Are you aware that the M2 Ultra isn't in fact a phone, but a SoC? > I'd think the beefiest version wouldn't cost more than $2000. It doesn't have a screen like a laptop etc. And it never will. It's a chip.