5 ms·
That was only materials and manufacturing costs. The real margin is lower. Subtract advertising, software development, hardware design, etc
by xenophanes 14y ago
That was only materials and manufacturing costs. The real margin is lower. Subtract advertising, software development, hardware design, etc
- awwstn 14y agontm shipping
- InclinedPlane 14y agoShipping is inconsequential. How many iPad mini's fit in a shipping container?
- wmf 14y agoThis may not matter, but Apple tends to ship each unit by air from the factory to the customer which should cost considerably more than containers. (example: http://www.cultofmac.com/192038/look-at-all-these-iphone-5s-flooding-fedexs-distribution-center-image/ http://www.cultofmac.com/192038/look-at-all-these-iphone-5s-... )
- curt 14y agoA shipping container last time I looked cost $6k. Air freights really won't add that much cost to something the weight of the iPad, less than a dollar.
- brianchu 14y agoTrue. But those are fixed costs that can be spread out over millions of devices. Some estimate that 2 million iPad Mini's were sold this weekend (http://www.computerworld.com/s/article/9233257/iPad_Mini_iPad_sales_crack_3M_over_three_days http://www.computerworld.com/s/article/9233257/iPad_Mini_iPa...). Given that a couple more millions will be sold in the future, you could accommodate $10mil+ for a few bucks. Note that the 3 million figure is for both the new iPad and the iPad Mini.