[NPMUG] CARPE DIEM: Teardown of Apple's Tiny iPod Shuffle

[Ralph Waechter]

I trust this is not off-topic for this list, but I could not help but  
scratch my head reading this one.  If one accepts the premise that  
there is a boat load of margin in the sale of a single Nano, I ask,  
"what's the point?"  Even assuming some component of advert or other  
overhead cost is added into production cost, the GASE as it were,  
maybe the margin is a mere 21-foot two master worth of profit, rather  
than a Trump-esque ocean cruising yacht-sized profit.  Still, I ask,  
whatzapoint?  Sustainable sellers always try to max out on profit -  
that is why they make and sell what they do ... figuring out price is  
less a function of cost (the apparent point of the article) than it  
is what consumers will pay.  If consumers pay the ask, then it is  
worth precisely that to the consumer.  The trick for Apple (rather  
successfully it would seem) is that they make profits in sizable  
amounts by creating things folks pay a price for that permits the  
taking of profit.  Kudos to Apple.  Kudos to those consumers who  
value the product and pay the price.

So, what was the point ;-)

Sorry, couldn't help myself.

On Apr 14, 2009, at 11:51 AM, R_Adams wrote:

>
> http://mjperry.blogspot.com/2009/04/teardown-of-apples-tiny-ipod- 
> shuffle.html
>
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