What big three? nintendo already backed up from the war with the Wii, they arent going against X360 and PS3, not like they use to do. I already gave an idea of casual gaming on the ATV being like the one in the Wii, for the simple reason the wiimote is something pretty easy to ripoff, and apple is known for selling other people stuff as homemade innovations. Just the iphone: synaptics had something even better last year, and theres even an older "open" linux cellphone project that was IDENTICAL to the iphone, just oval shape (the device, not the screen). I can see games like wiisports, wario ware and others coming to the ATV (with other names of course) EDIT: abou the iPhone price, the problem isnt the 50% profit/overcharge (thats an apple standard) but that they are selling it only on cingular and with a friggin 2-year contract. I wouldnt mind buying it unlocked even at the 600 bucks MSRP, but with such a contract I want it subsidized like any other phone would be.
If you don't like it only being on Cingular, complain to the other networks. Apple made the i-phone SIM based because they want to sell it in more markets than the USA.
Honestly I dont care, and even if I did do you think apple would do something? they never listen to critics...
To be honest, that's really it. After decades of questionable business tactics, Apple now can (and does) tack on a profit margin on most of their products. That's why their yearly profits are so high as of late. The iPod is the same way. The newest revisions command net Apple a 40% to 50% profit on each unit sold. It's no wonder why they continue to milk that brand to death, EA style.
No that isn't it at all. The prices quoted are only raw materials(theoretically). It's 50% "gross margin". GROSS MARGIN. Thats very different from "net profit". If I worked in R&D at Apple making the iphone and Apple was making 50% profit on every phone sold after raw materials, I'd be pissed off because that means I wouldn't be getting paid. Xbox and Playstation discs only cost pennies to make. That doesn't mean that at MSRP theres a 99.9% "net profit". Apple has a great R&D department and an even nicer advertising department. They make and sell products that are desirable to alot of people. They make high yearly profits due to wise investments. This is the foundation of any good[profitable] company. I have no clue why people single out Apple as though they are the "bad guys".
I think the safest way of knowing their profits is taking a look at Apple's stock and its tendencies internal budget managment is too detailed for any of us to "speculate", because it won't even give us a rough approximation of the logistics involved.
I'm not sure that there is anyway to accuratley determine per unit profit, unless that information is somehow public knowledge via tax records. I kind of doubt it. I'm just trying to point out that saying Apple is making 50% profit when all you're looking at is materials cost vs MSRP is really short sighted.
Looks like they ship in february. You can order one here:http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore?family=AppleTV In regards to a gaming console, an interesting small print at the bottom of the page: Obviously Ipod games would not work natively. But could be ported/emulated with little effort. Seems like it would be off to a bad start as a game console if Apple flat out denies it iPod games.
Thank you. I do know the difference between gross margin, gross profit and how it all works. I was merely responding to Shadowlayer's post and relating the iPod example.
I'm sorry, but either you don't or you made a typo in your earlier comment. Ipods don't net apple 40-50% profit. Thats gross margin, MSRP minus bill of materials. I know most news headlines neglect to mention the gross/net and it's caught me off guard a couple of times too. I don't mind it when people gang up on apple, but please get the facts straight. They don't get to pocket 50% of the resale price (I'm sure they wish they could). Source1 Source2
"What big three? nintendo already backed up from the war with the Wii, they arent going against X360 and PS3, not like they use to do." As long as Nintendo is in the market, it's still in. They're making VIDEOGAMES - the company is still a part of the big picture, despite the truth that Nintendo isn't directly competing like the other two.
Yes I know, but re-read my post again. What I'm trying to say is that while a 50% is an apple standard I just cant understand why the iphone is also locked in cingular and with a 2-year contract. Most phone companies offer great discounts on pricey phones when you agree to such long period contracts, but apple is selling the iphone at unlocked prices and with a subsidized-like plan, which in my opinion is kinda abusive... I would pay the $600 even if it was only in cingular, but 2 years? with the data plan fares (necesary to use most of the iphone functions) is going to be like $3000 when the contract is over. And about R&D, I'm hearing rumors that the synaptics phone is actually the iPhone, and that apple bought it some months ago to replace the internal iPhone prototype. And I dont think theres any apple haters here, not more than MS, sony and even nintendo ones, the problem is that critisicing apple is seen for many as something wrong. Is the context, like if you make a joke about buddhism in Tv there wont be that much bad reactions to it, but if you laugh at jesus or christianism...... Actually I dont, is a waste of time to worry about that when is clear that cingular has paid for the exclusivity. The only way apple will change its view is that the iphone flops...