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> Assume a 55% profit margins, and $1200 ASP, you're looking at $28,160 in profit from making iPhones instead. No wonder Apple discontinued the M3 Ultra 512GB.
by benoau 4mo ago
> Assume a 55% profit margins, and $1200 ASP, you're looking at $28,160 in profit from making iPhones instead. No wonder Apple discontinued the M3 Ultra 512GB.
How would that work? They purchase 512GB from Samsung and then it doesn't matter if that's like 128x 4GB or 4x 128GB?
- Schiendelman 4mo agoIt's likely the capacity they have reserved can be in different combinations.
- bel8 4mo agoNote that this reserved capacity now has competition from OpenAI, Anthropic, xAI, Meta, Microsoft, Chinese data centers and so on, all willing to pay premium. If comapnies keep spending half a macbook neo worth of subscription on AI plans monthly per person, Apple is going to have a hard time competing.
- airstrike 4mo agoThat's a very big if, though. There's been extensive news coverage about companies increasingly trying to move away from tokenmaxxing
- nok22kon 4mo agobut they move from tokenmaxxing to tokenmidding, not to tokenzero
- mcintyre1994 4mo agoCompanies are spending even more than that if they’re using the $200 subscription worth of tokens on the enterprise plans too.
- Schiendelman 4mo agoThat's part of why Apple is building on 18A from Intel next year.