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When compared to the other end of the spectrum, such as the Google Nexus 7, which barely sells for more than production costs, 400% is a huge margin. I'd doubt

by Klinky 14y ago

When compared to the other end of the spectrum, such as the Google Nexus 7, which barely sells for more than production costs, 400% is a huge margin. I'd doubt you would find too many other companies out there who are making as large of a margin on their mobile devices as Apple is.

philwelch 14y ago
The Nexus 7 practically has no costs over and above production. Android itself is subsidized by Google's advertising business, which cuts out the software development costs. The industrial design and manufacturing quality are nothing special--I doubt they spent a year measuring people's ears just to discover the optimal headphone shape, or designed manufacturing processes to reduce the tolerances to microns. Google doesn't have retail stores in every metropolitan area where you can take in your Nexus 7 when it's acting up. When you take all these things into consideration it's surprising Apple's products are as competitive as they are.
- Klinky 14y ago
  Much of what you wrote is what Apple marketing wants you to think. It's kind of hard to know for sure how much effort was put into the EarPods or what's going on with the micron tolerances. Apple is not immune to errors, the antenna in the iPhone4, Apple Maps has major problems and Time Machine seems to be broken for many using OS X Mountain Lion. Apple Stores are a big part of Apple marketing. The service received a these store can range from exceptional to terrible. They don't pay the people who do technical support or work in retail big bucks either. I am not surprised Apple is doing so well, given the premium they charge for their devices.
  - philwelch 14y ago
    > They don't pay the people who do technical support or work in retail big bucks either. The fact that they hire those people at all represents an expense and a service that Android manufacturers just don't have. The operating costs for an Apple store are probably higher than Nexus 7 retailers like Gamestop, Sam's Club, Staples, Office Depot, or Kmart--and the level of service is largely a step ahead as well. Either way, it's still an expense that isn't accounted for in manufacturing margin, which was the original point of the exercise.

by Klinky 14y ago

philwelch 14y ago

The Nexus 7 practically has no costs over and above production. Android itself is subsidized by Google's advertising business, which cuts out the software development costs. The industrial design and manufacturing quality are nothing special--I doubt they spent a year measuring people's ears just to discover the optimal headphone shape, or designed manufacturing processes to reduce the tolerances to microns. Google doesn't have retail stores in every metropolitan area where you can take in your Nexus 7 when it's acting up. When you take all these things into consideration it's surprising Apple's products are as competitive as they are.

Klinky 14y ago
Much of what you wrote is what Apple marketing wants you to think. It's kind of hard to know for sure how much effort was put into the EarPods or what's going on with the micron tolerances. Apple is not immune to errors, the antenna in the iPhone4, Apple Maps has major problems and Time Machine seems to be broken for many using OS X Mountain Lion. Apple Stores are a big part of Apple marketing. The service received a these store can range from exceptional to terrible. They don't pay the people who do technical support or work in retail big bucks either. I am not surprised Apple is doing so well, given the premium they charge for their devices.
- philwelch 14y ago
  > They don't pay the people who do technical support or work in retail big bucks either. The fact that they hire those people at all represents an expense and a service that Android manufacturers just don't have. The operating costs for an Apple store are probably higher than Nexus 7 retailers like Gamestop, Sam's Club, Staples, Office Depot, or Kmart--and the level of service is largely a step ahead as well. Either way, it's still an expense that isn't accounted for in manufacturing margin, which was the original point of the exercise.