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Handhelds The Almighty Buck Apple Hardware Technology

iPad Mini Costs $24 More To Make Than Kindle Fire HD 260

Posted by timothy
from the price-theory-at-work dept.
sweetpea86 writes "... but retails for $130 more. Teardowns of the Apple iPad Mini and the Amazon Kindle Fire HD have revealed that the two devices cost almost the same amount to manufacture, despite the retail prices being significantly different. Andrew Rassweiler, senior principal analyst of teardown services for IHS iSuppli, explains that Apple is sticking to the premium brand strategy it has always used for its media tablet and smartphone products, whereas Amazon is banking on content."
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iPad Mini Costs $24 More To Make Than Kindle Fire HD

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  • Few things (Score:5, Insightful)

    by SquarePixel (1851068) * on Tuesday November 06, 2012 @11:08AM (#41893605)

    First of all, Apple makes its own OS and applications while Amazon just uses Android. On top of that Amazon has always tried to keep their price down so they can sell more ebooks. Apple tries to make profit by selling their devices. These two things combined, I don't think the $100 price difference is that much. It's almost surprisingly low.

  • by jeffmeden (135043) on Tuesday November 06, 2012 @11:11AM (#41893665) Homepage Journal

    The $35 in extra cost turns into $130 at the consumer level. That's actually pretty much right for a manufactured good. You see, when someone makes a product they typically want to charge MORE for it than it costs to produce. This difference is called Profit. The more it costs, the more you must charge. Plus, it's apple. Even if it cost less, they are selling you the device plus the brand. Or did you think Phil Shiller worked for free?

  • Re:Few things (Score:3, Insightful)

    by Haxagon (2454432) on Tuesday November 06, 2012 @11:16AM (#41893725)

    No, it's most certainly not surprisingly low.
    Apple has piles of money; they're not recouping losses from development with the price, just wanting more profit.
    Amazon also has an app store of their own.
    It's not surprisingly low, it's surprising how high it is and how someone could possibly be open to the idea of higher profit margins on their devices.

  • Re:Few things (Score:1, Insightful)

    by Bill, Shooter of Bul (629286) on Tuesday November 06, 2012 @11:37AM (#41893999) Journal

    Unfortunatly, IOS && OSX of today are greatly modified versions of BSD, with a different kernel and apis. Macs were a great unix desktop ten years ago, now they just kind of blow. Linux is the only way to go these days for Unix && desktop.

  • Re:Few things (Score:4, Insightful)

    by beelsebob (529313) on Tuesday November 06, 2012 @11:44AM (#41894083)

    You're right –Mac OS X clearly has 0 lines of code that are not from BSD.

    Aside – this is the fallacy I hate that leads people to use the GPL rather than the BSD license. They somehow make an assumption that anything build on top of system A must be exactly the same as system A (or entirely stolen from system A), and no more, no matter how much more it does. This fallacy leads to the reasoning "if the sum of their work and my work is exactly the same as my work, then clearly I should get to decide how their work is licensed.

  • Re:Few things (Score:5, Insightful)

    by retchdog (1319261) on Tuesday November 06, 2012 @11:45AM (#41894091) Journal

    uh, what's the difference between then and now, exactly? i've been using os x for a unix environment since 2005, and the biggest change i've noticed on the unix side is that they ditched powerpc for intel (thank christ).

  • Re:Few things (Score:5, Insightful)

    by Anonymous Coward on Tuesday November 06, 2012 @11:46AM (#41894105)

    1. We have iPhones and my kid (who will be the primary user of the device) is already accustomed to the interface

    2. The educational games/books we've downloaded for it are already there and ready to be synced.

    6. As an Apple (iPhones, Mini, and MBP) and Amazon customer (I'm a Prime member and use them for video rentals, most online purchases, etc), I simply preferred the Apple device even though it was considerably more money.

    YMMV.

    Apple's locked you into their ecosystem and you're paying double for the convenience. That was their plan.

  • Re:Few things (Score:5, Insightful)

    by beelsebob (529313) on Tuesday November 06, 2012 @11:48AM (#41894133)

    Apple has piles of money; they're not recouping losses from development with the price, just wanting more profit.

    No shit... They're a company, that's what companies do.

    Amazon also has an app store of their own.

    Yes, the point being that Amazon, being a company, also want to make substantial profit. They just have a different model for how they do it.

    In Apple's case the model is "Provide lots of content for cheap, then people will want to buy that hardware that can use that content at a premium".
    In Amazon's case the model is "Provide a piece of hardware for cheap, then people will use that hardware to buy content for it from us at a premium".

    This difference leads to the Apple hardware being significantly more expensive. Big surprise.

  • It matters not. (Score:2, Insightful)

    by sootman (158191) on Tuesday November 06, 2012 @11:58AM (#41894249) Homepage Journal

    I can give $20 worth of ingredients to my neighbor (he's a chef) and the same to my kid, but you'd be a fool to think that you'll get two meals of comparable value from them.

  • Re:Few things (Score:2, Insightful)

    by Anonymous Coward on Tuesday November 06, 2012 @12:05PM (#41894309)

    They didn't develop their OS or the ideas

    Bet you can't build something like the iPhone off of the pieces they took.
    Bet ANY OTHER COMPANY can't build something like the iPhone off the pieces they took. Because even Android needed help getting to where they were by looking to Apple's OS.

    But rant on, dude.

  • Re:Few things (Score:2, Insightful)

    by geekoid (135745) <dadinportland.yahoo@com> on Tuesday November 06, 2012 @12:10PM (#41894403) Homepage Journal

    What cheap content on Apple? I'ts the same and often cheaper on Amazonb.

    Apples case is: People want to be hip, cool and cutting edge while not actually having to learn anything. We market that and charge.
    To quote Smithers: "Well, it's a policy that ensures a healthy mix of the rich and the ignorant, sir. "

    Amazons case is: "Get everyone Apple doesn't get."

  • Re:Few things (Score:3, Insightful)

    by Anonymous Coward on Tuesday November 06, 2012 @12:33PM (#41894703)

    Translation: We made some decisions that cost more, but allow us to deliver a superior experience. If that's not your cup of tea, feel free to buy an Amazon tablet where all the design trade-offs were made to allow it to be produced cheaply, and is being sold at cost because they can lock you into buying content from them in order to make their money on the back end.

  • Re:Few things (Score:4, Insightful)

    by gnasher719 (869701) on Tuesday November 06, 2012 @12:42PM (#41894863)

    Unfortunatly, IOS && OSX of today are greatly modified versions of BSD, with a different kernel and apis. Macs were a great unix desktop ten years ago, now they just kind of blow. Linux is the only way to go these days for Unix && desktop.

    Strange what you say there, considering that MacOS X is actually POSIX certified, and Linux for obvious reasons isn't. If you want Linux, use Linux. If you want Unix, Linux isn't Unix. Never was. Never will be.

  • Re:Few things (Score:5, Insightful)

    by Fallingcow (213461) on Tuesday November 06, 2012 @01:13PM (#41895293) Homepage

    You're not going to be deploying any of that code on OSX, your target is almost always going to be Linux. So why not just develop on Linux?

    Commercial programs without using WINE, rock-solid features—sleep/wake rarely-bordering-on-never breaks, hardware all works well, GUI never shits itself and shuts down, updates don't break your wireless, etc.—some gaming available without tons of dicking around to make it work (or you can boot to Windows in either case, obviously), *nix shell, high-quality displays, great power management, and so on.

    Linux is for tinkerers, VM jails, and servers.

    I ran Linux on the desktop/laptop for years, including Gentoo for a long stretch. It's a fucking pain in the ass, and if you aren't having problems it's because you've been damn lucky. You don't want to be the guy who can't get shit done because X decided you can go fuck yourself, or an upgrade broke wireless, or you need to give a presentation and your HDMI out is doing weird things or simply not working, even though it works on your monitor at home, and so on.

    It's kind of like the whole "no one got fired for buying IBM". OSX works more often and more smoothly, and if it doesn't no-one blames you. Anyone who doesn't get a bit nervous when they need to use their Linux box in unfamiliar/untested settings or circumstances probably hasn't had to do it very often and therefore doesn't realize that they have very good reason to be nervous about it.

  • Re:Few things (Score:4, Insightful)

    by samkass (174571) on Tuesday November 06, 2012 @01:27PM (#41895505) Homepage Journal

    And the obvious point: Apple is selling all they can make right now. Supply and demand would dictate Apple should be charging even MORE, but price is artificially low so people don't start associating the product with an even higher price later on.

  • Re:Few things (Score:5, Insightful)

    by Dr. Evil (3501) on Tuesday November 06, 2012 @01:39PM (#41895753)

    Google's locked you into their services, your data is being mined and your eyes are being sold to advertisers. That was their plan.

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