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It isn't necessarily that the 32gb for instance is scandalously marked up over the 16gb. It's that the entry level is sold closer to cost in order to compete in
by benjaminwootton 13y ago
It isn't necessarily that the 32gb for instance is scandalously marked up over the 16gb. It's that the entry level is sold closer to cost in order to compete in that segment.
Entry level tablets have seemed really cheap since the iPad was first unveiled, and thats partly because the higher end models are subsidising the low end ones.
- MichaelGG 13y agoThis teardown seems to disagree: http://www.isuppli.com/Teardowns/News/Pages/New-iPad-Air-Costs-Less-to-Make-Than-Third-Generation-iPad-Model-,IHS-Teardown-Reveals.aspx http://www.isuppli.com/Teardowns/News/Pages/New-iPad-Air-Cos... The 16GB models have 45-50% "implied margin". The highest end has 60%. That hardly sounds like subsidizing for any useful definition of subsidizing.