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Analyst: People Are Overpaying Apple for 128 GB iPad 4

By - Source: CNET | B 73 comments

Apple spends just $35.20 more on producing a 128 GB iPad 4 over a 64 GB model, while consumers pay $100 more.

An analyst has said that consumers are paying considerably more than what it costs Apple for the added 64 GB of memory on 128 GB iPad 4 over the 64 GB model.

The new models are priced at $799 for the 128 GB WiFi only model, while the version with 4G LTE connectivity will cost consumers $929. For both the WiFi only model and the 4G LTE enabled model the added price for doubling the storage capacity is $100 for each step.

Apple is spending around $35.20 more for the additional 64GB of flash memory on the 128 GB model. "Apple's cost per GB in NAND flash is currently around $0.55/GB. Last year it was closer to $0.90/GB," said Andrew Rassweiler of IHS. "So it's clear that pricing has eroded to the point that Apple can afford to offer 2X memory configurations while maintaining the kind of incremental profit margins they were making on the memory upgrades a year ago."

Apple, which has been criticized for its premium prices (Defended using the iPad Mini's price point, which is priced at $329 but costs Apple $188 to build), recently lost its place as the world's most valuable company.


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Top Comments
  • 40 Hide
    SoiledBottom , February 4, 2013 12:03 AM
    And the sky is blue
  • 36 Hide
    edgewood112358 , February 4, 2013 12:05 AM
    I think a more appropriate title would be "Analyst: People are Overpaying Apple"
  • 34 Hide
    LuckyDucky7 , February 4, 2013 12:03 AM
    Quote:
    Consumers are paying considerably more than what it costs Apple for the added 64 GB of memory on 128 GB iPad 4 over the 64 GB model.


    News flash: Apple is Apple.
Other Comments
  • 34 Hide
    LuckyDucky7 , February 4, 2013 12:03 AM
    Quote:
    Consumers are paying considerably more than what it costs Apple for the added 64 GB of memory on 128 GB iPad 4 over the 64 GB model.


    News flash: Apple is Apple.
  • 34 Hide
    friskiest , February 4, 2013 12:03 AM
    Seriously?... Does this even warrant as a news.. after all this time.
  • 40 Hide
    SoiledBottom , February 4, 2013 12:03 AM
    And the sky is blue
  • 36 Hide
    edgewood112358 , February 4, 2013 12:05 AM
    I think a more appropriate title would be "Analyst: People are Overpaying Apple"
  • 30 Hide
    bspatial , February 4, 2013 12:12 AM
    C'mon Apple, is that the best price you can offer? It's way too cheap. My bank account is not being challenged enough. LOL!
  • 17 Hide
    beayn , February 4, 2013 12:13 AM
    Hey the people saying this is obvious are probably complaining that iSheep don't know what they're buying and are stupid for getting ripped off... so this article pointing it out is a good thing, not a bad thing.

  • 27 Hide
    mikenygmail , February 4, 2013 12:20 AM
    Apple is overcharging for everything, and iSheep are overpaying.
    If no one paid the high prices, they would be a lot lower.
  • 5 Hide
    southernshark , February 4, 2013 12:22 AM
    its well worth it just for the extra copies of jOBS that it will hold.
  • 3 Hide
    Shin-san , February 4, 2013 12:24 AM
    As much as I avoid buying Apple products, if other people want to spend their money on them, I'm fine with it
  • 23 Hide
    billgatez , February 4, 2013 12:28 AM
    Analyst spouts something that common knowledge. And gets payed to do it.
  • 24 Hide
    nonoitall , February 4, 2013 12:29 AM
    I think people are overpaying analysts for stating blatantly obvious facts...
  • 9 Hide
    Anonymous , February 4, 2013 12:32 AM
    (Stupid) people are overpaying for all Apple products
  • 11 Hide
    tobalaz , February 4, 2013 12:59 AM
    Really?!
    i'M shocked!
  • -6 Hide
    hammer85 , February 4, 2013 1:18 AM
    iSheep! Now that's a nice term.
  • 3 Hide
    Gundam288 , February 4, 2013 1:19 AM
    beaynHey the people saying this is obvious are probably complaining that iSheep don't know what they're buying and are stupid for getting ripped off... so this article pointing it out is a good thing, not a bad thing.

    I normally don't care about Apple products, but lately I have been steering people away from them given the problems with the iPhone 5 build quality issues and the iOS6 map update.

    And the ones that took my advice thanked me after trying them out in the store. This pricing is crazy tho. They would be better of putting an SD slot in, sell and overcharge for them at Apple stores to make more profit.

    Just my opinion tho.
  • 6 Hide
    sublime2k , February 4, 2013 1:29 AM
    People are overpaying Apple, period.
  • 4 Hide
    sacre , February 4, 2013 1:32 AM
    hammer85iSheep! Now that's a nice term.


    People don't know any better. What they want it something that functions properly without choppyness, without issue and Apple provides that.

    Unfortunately, at an insane stupid price. Its the most popular for a reason and as much as you try and convince yourself its simply because its pretty - its because it works and does what you want it to do without lagging behind and getting all choppy. It was Apple that introduced this whole touchscreen smooth interface "Phase" and everyone quickly followed (Took years to catch up too).

    Today though, it seems Apple is more about money then product, it updates its product a tiny bit and charges a fortune for it. Its absolutely pathetic. I am switching to the Galaxy 4 when its released just so I can stop supporting Apple and once they realize that they're falling behind because of their price gouging, they'll produce products at a better more reasonable price.

    Or not.

    Who knows.
  • 10 Hide
    dgingeri , February 4, 2013 1:39 AM
    People are overpaying for Apple products across the board. This isn't the only piece.
  • 2 Hide
    Anonymous , February 4, 2013 1:40 AM
    $35 dollars? This analyst is being way to nice. More like not even. I highly doubt if it cost them anything much at all to add the additional space. They buy it in MASS BULK, it's practically nothing.

    And so what? We all, already knew this. Thanks Captain Obvious!
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