Quote:
Originally Posted by Kali Yuga
I concur. There is also a tremendous misperception that a) what costs so much is the physical object, and b) there is, or ought to be, a direct link between what the object costs to make, and its resulting price.
This is one reason why the electronics "tear-downs" are rather pointless. An ebook reader might cost $100 to manufacture, but the purchase price may have to cover some or all of 3 years of free cellular wireless, warranties, plus the usual suspects (taxes, customer service, etc etc)....
Of course, it would be great if I could buy any book for $5. But if I want the people who actually produced and delivered the book to be compensated, then I guess I have to suck it up and pay a little extra.
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Exactemundo, what does it cost to produce an iphone? 120 or so, I think. And the real selling price, unsubsidized, unlocked? Around 800. So? Is Apple selling it for 140 now that we know the production cost? Is anyone calling Apple the greediest company on the face of the planet for those margins?