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.
News flash: Apple is Apple.
If no one paid the high prices, they would be a lot lower.
Non-Apple manufacturers aren't doing enough marketing to get attention.
i'M shocked!
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.
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.
And so what? We all, already knew this. Thanks Captain Obvious!