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In reply to the discussion: Andrea Greenspan: "Sending jobs overseas can make a stronger company and more hiring at home" [View all]Zalatix
(8,994 posts)31. On the other hand, their signature iPad...
http://www.pcworld.com/article/188196/apples_ipad_profit_breaking_it_down.html
The new iPad tablet priced at $499 actually runs Apple about $270 in materials and manufacturing costs, a Wall Street analyst said.
According to a bill of materials (BOM) analysis by Brian Marshall of BroadPoint AmTech, the cost of goods inside Apple 's 16GB WiFi-only iPad totals $270.50. That figure includes a $10 line item dedicated to manufacturing, but doesn't include another $20 set aside for under-warranty service costs. Adding the latter makes Marshall's bottom-line total $290.50.
According to a bill of materials (BOM) analysis by Brian Marshall of BroadPoint AmTech, the cost of goods inside Apple 's 16GB WiFi-only iPad totals $270.50. That figure includes a $10 line item dedicated to manufacturing, but doesn't include another $20 set aside for under-warranty service costs. Adding the latter makes Marshall's bottom-line total $290.50.
By Marshall's estimate, the $629 16GB iPad with WiFi and 3G costs Apple $306.50, just $16 more than the WiFi-only model, giving the company a profit margin of 52%, a jump of nine percentage points.
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Andrea Greenspan: "Sending jobs overseas can make a stronger company and more hiring at home" [View all]
Amerigo Vespucci
Jul 2012
OP
Apple is a good example; if they manufactured in the US, they'd have been priced too high to grow.
FarCenter
Jul 2012
#3
The labor cost differential is higher and there would be productivity and quality problems as well.
FarCenter
Jul 2012
#32
you wouldn't be able to work them like dogs, and pay them a pittance. you mean. n/t
progressivebydesign
Jul 2012
#35
Yes, and even if you could, the scrappage rate and warranty costs would be too high.
FarCenter
Jul 2012
#39