Tablet BOM Teardown: Apple vs. Amazon

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t.alex
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Re: Apple Hw price
t.alex   11/13/2012 12:18:53 AM
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Most of the extra storage is for photos and videos I think. If we don't store much it makes sense just to get the lowest capacity.

elctrnx_lyf
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Apple Hw price
elctrnx_lyf   11/9/2012 3:14:24 AM
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Even though the price of Apple hardware is really high google and amazon will not be able to beat them. But I do not like the Apple idea of charging exprbiant margins for the extra storage memory.

Barbara Jorgensen
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Re: Amazon
Barbara Jorgensen   11/8/2012 4:21:08 PM
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@t.alex: I wasn't aware of the pay-per-byte strategy until I read about it in the IHS releases. It makes sense: that's how carriers charge for usage. I like the idea of "flexibile spending" on my hardware.

t.alex
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Re: Amazon
t.alex   11/7/2012 5:47:16 PM
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The memory markup price is huge and that is good strategy. Consumers do pay more if they need more capacity. And that's why they never put in a SD card slot.

Barbara Jorgensen
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Amazon
Barbara Jorgensen   11/7/2012 4:22:03 PM
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Jacob: I agree that Amazon's strategy isn't about hardware. And it looks like it is working. Many reserach companies count units rather than revenue and based on units, Amazon is doing pretty well in the hardware market. It just amazes me that a piece of equipment like a tablet is a "throw-away" item. The same is true of cell phones. When you think about all the technology that has gone into these items, they really are incredibly cheap to manufacture.

Jacob
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Amazone business Model
Jacob   11/6/2012 11:45:23 PM
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Barbara, it's very evident that Amazon wants to promote Kindle to a large community. Along with sale of their tablet, they expect peoples to do more business with their online store. So it's like a package where they are selling devices and expecting peoples to do more business through their devices. Later there may be chances for offering some discounts for doing business through Kindle. But when other tablets are available in market for a through away price of less than $100, will you think this model will work it out.



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