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

[R_Adams]

Reading between the lines on your post, you may be confused because  
you might be assuming that profit is implied as being bad.  I took a  
different read.  The article seems to be trying to substantiate that  
refinements that lead to smaller and more simple designs, result in  
more profitability.  But then again, maybe Business Week is just  
jealous of Apple's margins.  I agree that margins are a very good  
thing... unless you are currently in the banking business.  Keep  
repeating as we joyfully pay our fair share tomorrow.   :)


On Apr 14, 2009, at 6:16 PM, Ralph Waechter wrote:

> 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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