Thread: iPad vs. iPhone: BOM, pricing gaffes, etc.

iSupply did its thing and came up with the bill of materials (BOM) for the just announced iPad: $220

iPad Estimated to Be Worth as Little as 0 in Parts | Gadget Lab | Wired.com

As always, this is just hardware: software, marketing, distribution, etc. is not taken into account. What's even more, this time iSupply didn't have a device to take apart and mostly guessed what parts could be inside and their cost.

This BOM - less than half the announced selling price - might actually explain why Apple execs already talk about dropping the price to stimulate sales

WSJ: Apple could slash iPad prices if sales disappoint - Mac - Macworld UK




Apple Management: iPad Prices Could Change - MarketBeat - WSJ




The most interesting part, when iPhone came out it had the BOM estimate in the same ballpark

iSuppli reports their own BoM – 8GB iPhone costs Apple 0 to produce | iPhone Buzz




As everybody remembers, iPhone started selling for $600 and two month later was reduced by a third to $400 accompanied by Jobs' apology (first I ever heard). I don't think any proof is needed to claim that the level of excitement iPad has generated is less than the iPhone. Therefore, I'd go on record with a prediction that (entry level) iPad (announced to be $500 when released) will be no more than $400 by no later than summer. Possibly $350. And if it is hacked by then (like the Nook), it will take off.

Diogen.

i won't consider the ipad until it can multitask and use flashplayer.
too many websites that use flash. I have an ipod touch and iphone which i like. My iphone is jailbroken with blackra1n and cydia.

ipod is stock as it came. it has the mc bootrom and i am not interested in tethering if i have to reboot.

the ipad is just a big ipod touch.

when apple quits dangling the carrot at all the apple fanboys...i will jump on an ipad when it is full featured....maybe a camera would be nice too.

Originally Posted by diogen

What's even more, this time iSupply didn't have a device to take apart and mostly guessed what parts could be inside and their cost.

This time iSupply took apart a real iPad and corrected their estimate: iPad's BOM is around $260.

http://www.businessweek.com/technolo...046_788280.htm

Diogen.

This is stupid. I always thought it was stupid. My reason is quite simple- If they did the same with the human body and figured out the price of the parts based on the chemicals that make it up the worthwhile value would likely be in the neighborhood of 2-3 dollars. In addition a fat slob would be worth more than a skinny physically fit athlete.

This was a lesson from my high school biology class.

Originally Posted by Don Landis

This is stupid. I always thought it was stupid. My reason is quite simple- If they did the same with the human body...

Yeah...
I'm with you here.
Drawing parallels between human body parts in different people and a Cirrus Logic audio chip in iPad and Dell netbook is extremely stupid...

Diogen.

Originally Posted by Don Landis

This was a lesson from my high school biology class.

Your high school biology curriculum probably didn't contemplate the black market value of a good kidney.

Originally Posted by diogen

Yeah...
I'm with you here.
Drawing parallels between human body parts in different people and a Cirrus Logic audio chip in iPad and Dell netbook is extremely stupid...

Diogen.

If Dell had all the parts they would not make an ipad. They would make a Dell and it would not work like an ipad.

If you had all the black market body parts all you'd have is a pile of flesh and goo an empty bank account and you still would not have a person.

So, I suppose the point is if you feel the ipad is only worth $260 then pay your $260 and this guy will sell you the parts. You supply the software, programming and solder and glue. Enjoy your $260 ipad kit.

Originally Posted by Don Landis

So, I suppose the point is if you feel the ipad is only worth $260 then pay your $260 and this guy will sell you the parts.

Can you read? Do you know what iSupply does? What BOM is?
Do you understand the difference between assembly line parts and body parts?

Where did anybody say the iPad costs $260?

From the first post:

As always, this is just hardware: software, marketing, distribution, etc. is not taken into account.

Diogen.

Oh, I read but so many people use these worthless blogs and do the interpretation I stated. You appropriately posted the facts.

My point remains: his whole concept is stupid. I appreciate your fascination with numbers but how about making an attempt at discriminating between numbers that are meaningful from those that are pointless.