I don’t like how hard the article tries to make it seem like the markup is justified because of all of Apple’s other costs. Apple will sell the product at whatever price it thinks the customer will pay, and the margins only matter to determine whether the product is worth it for Apple to sell (I’d love to see what the payback period is on the project though). The cost isn’t that outrageous if this COGS is correct, maybe slightly on the higher side for a tech product.
The real discussion should be whether the product is worth the price they are charging based on the utility and the cost of being essentially a beta tester as an owner of a 1st gen product.
I don’t like how hard the article tries to make it seem like the markup is justified because of all of Apple’s other costs. Apple will sell the product at whatever price it thinks the customer will pay, and the margins only matter to determine whether the product is worth it for Apple to sell (I’d love to see what the payback period is on the project though). The cost isn’t that outrageous if this COGS is correct, maybe slightly on the higher side for a tech product.
The real discussion should be whether the product is worth the price they are charging based on the utility and the cost of being essentially a beta tester as an owner of a 1st gen product.