Saturday, June 2, 2012

Slicing up your new Apple


Distribution of value for a 16GB Wi-Fi iPad in 2010.  Total retail price of $499 - -
  • Cost of material and components - - $154
  • Labor (unidentified) - - $25
  • Labor (China) - - $8
  • Cost of distribution and retail - - $75
  • Apple profit - - $150
Source is the Economist (page 8, April 21, 2012) - - total of cost and profit referenced in the article adds to $412.  Kenneth Kraemer at the University of California at Irvine is a better Apple slicer with the following paper:

http://pcic.merage.uci.edu/papers/2011/Value_iPad_iPhone.pdf

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