Media beat-ups around the Apple iPad continue. This headline “Virtual teardown reveals great iPad rip-off” (see here) would be funny if it wasn’t so misguided.
– Apple is perhaps costing US$229.35 to produce (a ridiculously specific number for what is simply an estimate – here’s a breakdown of the component estimates)
– It is definitely selling for $US499
Ergo (in the reporter’s mind) Apple is ripping off Joe Consumer to the tune of $259.65 (that isn’t stated explicitly, but it is implied by the headline).
Of course, missing from the above maths are four pretty crucial elements:
– shipping and logistics costs
– the retail mark-up
– marketing costs
– development costs at Apple HQ
All of sudden, Apple doesn’t look quite so evil do they?